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The components that comprise a nation's gross domestic product (GDP) were identified and discussed in this chapter. Assume the following accounts and amounts were reported by a nation last year.
Government expenditures (purchases of goods and services) were $5.5 billion; personal consumption expenditures were $40.5 billion;
gross private domestic investment amounted to $20 billion; capital consumption allowances were $4 billion; personal savings were estimated at $2 billion; imports of goods and services amounted to $6.5 billion; and the exports of goods and services were $5 billion.
a. Determine the nation's gross domestic product (GDP).
b. How would your answer change if the dollar amounts of imports and exports were reversed?
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