Question

From the data below, calculate the GDP at market price. $\begin{array}{cc}\text{Items}& \left(\text{in lakh}\right)\\ \text{Gross Investment}& 90\\ \text{Exports}& 40\\ \text{Imports}& 30\\ \text{Private Consumption Expenditure}& 350\\ \text{Government Purchase of Goods}& 60\\ \text{Government Purchase of Services}& 40\\ \text{Inventory Investment}& 50\end{array}$

• A. 600 lakh
• B. 660 lakh
• C. 700 lakh
• D. 750 lakh

Answer 1

The correct option is A

600 lakh

GDP = Gross Investment + Inventory Investment + (Exports - Imports ) + Private Consumption Expenditure + Government Purchase of Goods + Government Purchase of Services.

GDP = 90 + 50 + (40 - 30) + 350 + 60 + 40

GDP = 600 lakh