Question

<!--td {border: 1px solid #ccc;}br {mso-data-placement:same-cell;}--> From the following information, calculate the Gross Domestic Product (GDP) of a country using the expenditure method.

Consumption: Rs 16,000

Investment: Rs. 700

Government expenditure: Rs. 13,000

Exports: Rs.1,90,000

Imports: Rs. 54,000

• A. Rs. 1,65,700
• B. Rs. 2,73,700
• C. Rs. 2,72,300
• D. Rs. 2,47,700

Answer 1

The correct option is A Rs. 1,65,700

The expenditure approach of calculating the GDP (Gross Domestic product) is a technique of estimating GDP that takes into account consumption, investment, government expenditures, and net exports. The expenditure approach is used to determine GDP by looking at how much money is spent inside a country's borders.

Under the expenditure method:

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

GDP = Rs. (16,000 + 700 + 13,000 + 1,90,000 - 54,000)
GDP = Rs. 1,65,700