Answer :
Certainly! Let's walk through the calculation process for determining the GDP based on the provided data.
GDP, or Gross Domestic Product, is calculated using the formula:
[tex]\[ \text{GDP} = \text{Consumer Spending} + \text{Investment by Business} + \text{Government Spending} + (\text{Exports} - \text{Imports}) \][/tex]
We have the necessary data for each year, and let's break down the GDP calculation for each year from the provided figures.
1. For the year 2002:
- Consumer Spending: \[tex]$7,384.1 billion
- Investment by Business: \$[/tex]1,925.0 billion
- Government Spending: \[tex]$2,094.9 billion
- Exports Minus Imports: -\$[/tex]426.5 billion
Using the formula:
[tex]\[
\text{GDP}_{2002} = 7384.1 + 1925.0 + 2094.9 - 426.5
\][/tex]
The GDP for 2002 would be \[tex]$10,977.5 billion.
2. For the year 2006:
- Consumer Spending: \$[/tex]9,304.0 billion
- Investment by Business: \[tex]$2,680.6 billion
- Government Spending: \$[/tex]2,642.2 billion
- Exports Minus Imports: -\[tex]$770.9 billion
Calculate the GDP:
\[
\text{GDP}_{2006} = 9304.0 + 2680.6 + 2642.2 - 770.9
\]
The GDP for 2006 is \$[/tex]13,855.9 billion.
3. For the year 2010:
- Consumer Spending: \[tex]$10,202.2 billion
- Investment by Business: \$[/tex]2,100.8 billion
- Government Spending: \[tex]$3,174.0 billion
- Exports Minus Imports: -\$[/tex]512.7 billion
Compute the GDP:
[tex]\[
\text{GDP}_{2010} = 10202.2 + 2100.8 + 3174.0 - 512.7
\][/tex]
The GDP for 2010 is \[tex]$14,964.3 billion.
4. For the year 2014:
- Consumer Spending: \$[/tex]11,928.4 billion
- Investment by Business: \[tex]$2,855.8 billion
- Government Spending: \$[/tex]3,174.5 billion
- Exports Minus Imports: -\[tex]$538.0 billion
Finding the GDP:
\[
\text{GDP}_{2014} = 11928.4 + 2855.8 + 3174.5 - 538.0
\]
The GDP for 2014 is \$[/tex]17,420.7 billion.
These calculations show how the GDP for each year is determined using the provided financial data, highlighting the components that contribute to the GDP totals for the respective years.
GDP, or Gross Domestic Product, is calculated using the formula:
[tex]\[ \text{GDP} = \text{Consumer Spending} + \text{Investment by Business} + \text{Government Spending} + (\text{Exports} - \text{Imports}) \][/tex]
We have the necessary data for each year, and let's break down the GDP calculation for each year from the provided figures.
1. For the year 2002:
- Consumer Spending: \[tex]$7,384.1 billion
- Investment by Business: \$[/tex]1,925.0 billion
- Government Spending: \[tex]$2,094.9 billion
- Exports Minus Imports: -\$[/tex]426.5 billion
Using the formula:
[tex]\[
\text{GDP}_{2002} = 7384.1 + 1925.0 + 2094.9 - 426.5
\][/tex]
The GDP for 2002 would be \[tex]$10,977.5 billion.
2. For the year 2006:
- Consumer Spending: \$[/tex]9,304.0 billion
- Investment by Business: \[tex]$2,680.6 billion
- Government Spending: \$[/tex]2,642.2 billion
- Exports Minus Imports: -\[tex]$770.9 billion
Calculate the GDP:
\[
\text{GDP}_{2006} = 9304.0 + 2680.6 + 2642.2 - 770.9
\]
The GDP for 2006 is \$[/tex]13,855.9 billion.
3. For the year 2010:
- Consumer Spending: \[tex]$10,202.2 billion
- Investment by Business: \$[/tex]2,100.8 billion
- Government Spending: \[tex]$3,174.0 billion
- Exports Minus Imports: -\$[/tex]512.7 billion
Compute the GDP:
[tex]\[
\text{GDP}_{2010} = 10202.2 + 2100.8 + 3174.0 - 512.7
\][/tex]
The GDP for 2010 is \[tex]$14,964.3 billion.
4. For the year 2014:
- Consumer Spending: \$[/tex]11,928.4 billion
- Investment by Business: \[tex]$2,855.8 billion
- Government Spending: \$[/tex]3,174.5 billion
- Exports Minus Imports: -\[tex]$538.0 billion
Finding the GDP:
\[
\text{GDP}_{2014} = 11928.4 + 2855.8 + 3174.5 - 538.0
\]
The GDP for 2014 is \$[/tex]17,420.7 billion.
These calculations show how the GDP for each year is determined using the provided financial data, highlighting the components that contribute to the GDP totals for the respective years.
