Suppose that aggregate consumption is $1,200,000, aggregate investment is $300,000, government spending is $200,000, the value of exports is $200,000, and the value of imports is $100,000. What is the value of Gross Domestic Product (GDP)?
a. $1,800,000
b. $1,700,000
c. $1,600,000
d. $2,000,000
e. none of the above
a. $1,800,000
Y= C + I + G + Nx Y= 1,200,000 + 300,000 + 200,000 + 100,000 = 1,800,000
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