To calculate GDP using the expenditure approach, we use the formula:

Question

ScanSolve AI Tutor · Accepted Answer

To calculate GDP using the expenditure approach, we use the formula:

GDP = C + I + G + (X - M)

Where:
$C$ = Consumer Expenditure
$I$ = Investment
$G$ = Government Expenditure
$X$ = Exports
$M$ = Imports

Identify the given values.
Consumer expenditure ( $C$ ) = $30 billion Government expenditure ($ G $) =$ 10 billion Investment ( $I$ ) = $20 billion Exports ($ X $) =$ 16 billion Imports ( $M$ ) = $20 billion
Substitute the values into the GDP formula.
$GDP = \$30 \text{ billion} + \$20 \text{ billion} + \$10 \text{ billion} + (\$16 \text{ billion} - \$20 \text{ billion})$
Perform the calculation.
$GDP = \$30 \text{ billion} + \$20 \text{ billion} + \$10 \text{ billion} - \$4 \text{ billion}$ $GDP = \$60 \text{ billion} - \$4 \text{ billion}$ $GDP = \$56 \text{ billion}$
Compare the result with the given options.
The calculated GDP is $56 billion, which matches option A.

The final answer is $\text{A}$ .

Answer