This document provides information to calculate a country's GDP using the expenditure method. It lists the country's government expenditures as $3,500, taxes as $2,200, consumption as $9,000, exports as $2,500, imports as $2,700, transfer payments as $750, capital depreciation as $800 and investment as $3,000. Using this expenditure method, the document calculates GDP as $15,300 by summing consumption, investment, government expenditures and net exports.

1. Suppose a country has government expenditures of $3,500, taxes of $2,200, consumption of
$9,000, exports of $2,500, imports of $2,700, transfer payments of $750, capital depreciation of
$800 and investment of $3,000. GDP equals:
A. $24,450
B. $11,550
C. $15,300
D. $20,700
Solution
Ans: C
GDP=C+I+G+NX = 9000+3000+3500+2500-2700=15300
Using expenditure method GDP is sum of consumption expenditure, private investment,
government expenditure, and net export.