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Readme
2 months ago
14

An economy produces only 1,000,000 computers valued at $2,000 each. Of these, 200,000 are sold to consumers, 300,000 are sold to

businesses, 300,000 are sold to the government, and 100,000 are sold abroad. No computers are imported. The unsold computers at the end of the year are held in inventory by the computer manufacturers. What is the value of the investment component of GDP?a. $0.9 billionb. $1.0 billionc. $1.8 billiond. $2.0 billion
Business
1 answer:
soldi70 [3.6K]2 months ago
4 0

Answer:

$2.0 billion

Explanation:

The Gross Domestic Product comprises the total monetary value of all goods and services produced within a country over a defined time period.

The formula for GDP is

GDP = consumption + government spending + investment + (exports - imports)

200,000 units are sold to consumers

300,000 units are sold to businesses

300,000 units are sold to government entities

100,000 units are exported

100,000 units remain in inventory

GDP= {200,000 + 300,000 + 300,000 + 100,000 + (100,000 - 0)} * $2,000

GDP = 1,000,000 * 2000

GDP = $2 billion

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