Question

The calculation of Spending GDP at this stage of our Circular Flow would be _________ .

A. 3500 + 500 - 1000 + 500 - 500
B. 3500 + 500 + 1000 + 500 - 500
C. 3500 - 500 + 1000 + 500 - 500
D. none of the above

Answer 1

its b.

Step-by-step explanation:

Answer 2

B. 3500 + 500 + 1000 + 500 - 500

Step-by-step explanation:

The basic formula for calculation of GDP comprises of household consumption of goods or spending (C), capital investment (CI), government investment (G), Export (E) and Imports (I). All the factors are added except for imports and the following formula can be derived from this:

GDP = C + CI + G + E - I

Now, looking at the given options, it can be seen that option B is in the given format and therefore, option B is the correct answer.