GDP=C+Ig+G+Xn
=219.1+63.9+59.4+(17.8-16.5)
= $ 343.7 (billions)
US exports of goods and services 17.8
Consumption of fixed capital (depreciation) 11.8
Government purchases 59.4
Taxes on production and imports 14.4
Gross private domestic investment 63.9
Transfer payments 13.9
US imports of goods and services 16.5
Personal taxes 40.5
Net foreign factor income 2.2
Personal consumption expenditures 219.1
Statistical discrepancy 0
Using the table above, calculate Gross Domestic Product using the expenditures approach.
GDP =
=219.1+63.9+59.4+(17.8-16.5)
= $ 343.7 (billions)
Here are the components provided in the table:
- Personal consumption expenditures: $219.1
- Gross private domestic investment: $63.9
- Government purchases: $59.4
- Net exports (exports - imports): $17.8 - $16.5 = $1.3 (not explicitly given in the table, but can be calculated as the difference between exports and imports)
Now, let's calculate the GDP:
GDP = Personal consumption expenditures + Gross private domestic investment + Government purchases + Net exports
Substituting the known values:
GDP = $219.1 + $63.9 + $59.4 + $1.3
Calculating the sum:
GDP = $343.7
Therefore, the Gross Domestic Product (GDP) using the expenditures approach is $343.7.
GDP = C + I + G + (X - M)
C = Personal consumption expenditures: $219.1
I = Gross private domestic investment: $63.9
G = Government purchases: $59.4
X = US exports of goods and services: $17.8
M = US imports of goods and services: $16.5
Substituting the values into the formula:
GDP = $219.1 + $63.9 + $59.4 + ($17.8 - $16.5)
GDP = $342.3
Therefore, the Gross Domestic Product (GDP) using the expenditures approach is $342.3.