GDP Calculation Based on Components

What is the nation's GDP for the year?

If net exports for the year are −1.7 million, government expenditures are 1.6 million, investment is 1.3 million, and consumption is 4.2 million.

Answer:

The nation's GDP for the year is $5.4 million.

To calculate the GDP (Gross Domestic Product) for the year, we need to consider the four components of GDP: consumption, investment, government expenditures, and net exports.

Given the following values:

- Net exports: -1.7 million (negative value indicates a trade deficit)

- Government expenditures: 1.6 million

- Investment: 1.3 million

- Consumption: 4.2 million

To calculate the GDP, we need to sum up these four components:

GDP = Consumption + Investment + Government Expenditures + Net Exports

Plugging in the values:

GDP = 4.2 million + 1.3 million + 1.6 million + (-1.7 million)

When we calculate this, we get:

GDP = 5.4 million

Therefore, the nation's GDP for the year is 5.4 million dollars. So the correct answer is $5.4 million.

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