ble below to calculate the Gross Domestic Product uning the

ble below to calculate the Gross Domestic Product uning the ral Gross Domestic Product? Fully explain your anower. (4 mak) or rea overnment expenditures on goods and service Wages, salaries and supplementary labour income 2,000 reciation nvestment 400 sumption expenditure et exports direct taxes 150

Solution

Gross domestic product be expenditure method= consumption expenditure+ government expenditure+ investment+ net export

=2200+500+400+(-50)

=3050

This is the nominal GDP as well as real GDP because base year price and current year price is not given.

Hence real GDP and nominal GDP will be same.