Given the Following Data for an Economy,compute the Value of GDP

question 108

Multiple Choice

Given the following data for an economy,compute the value of GDP.
Consumption expenditures
1000
Imports
600
Government purchases of goods and services
700
Construction of new homes and apartments
500
Sales of existing homes and apartments
600
Exports
500
Government payments to retirees
200
Household purchases of durable goods
300
Beginning-of-year business inventory
500
End-of-year business inventory
600
Business fixed investment
300

• A) 2,400.
• B) 2,500.
• C) 2,600.
• D) 2,700.
• E) 5,600.

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Definitions:

Journal

An accounting record where all transactions are initially recorded using the double-entry bookkeeping system before their details are posted to accounts in the general ledger.

T Account

A graphical representation used in accounting to depict the debit and credit sides of a ledger for easier visualization and understanding.

Account Title Column

The section of an accounting ledger or journal used to record the name of the account affected by each transaction.

Accounts Payable

Short-term liabilities or debts a company owes to its suppliers or creditors for goods and services received but not yet paid for.