Question:

Calculate GDP?

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Suppose you hae following info to compute grd

C = $150; Gross I = $55; Net I = $50; G = $75; G transfer payments = $30; Imports = $25; Exports = $20

Compute GDP and tell me the process how to do it. plzzzzzzzzzzzzzzzzzzzzzzz

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  1. GDP=C+I+G+Ex-Im = 150+55+75+20-25= $275

    Gov transfer should be ignored in this case though it is required for calculation of GDP using another approach (from income-side)

    Diff btw Gross and Net is that depreciation is deducted from Gross to get Net.

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