Assume a Small Nation Has the Following Statistics: Its Consumption

question 229

Essay

Assume a small nation has the following statistics: its consumption expenditure is $15 million,investment is $2 million,government expenditure on goods and services is $1 million,exports of goods and services to foreigners is $1 million,and imports of goods and services from foreigners is $1.5 million.Calculate this nation's GDP.

---

Definitions:

Price Elasticity

An evaluation of consumers' reaction in terms of the quantity of a good they demand when its price changes, indicating their price sensitivity.

Quantity Supplied

The amount of a good or service that producers are willing and able to sell at a specific price over a given period of time.

Price Rise

An increase in the cost of goods or services, often influenced by factors like supply and demand, inflation, or production costs.

Supply Elasticity

The degree to which the supply of a commodity reacts to shifts in its market price.