# For purpose of EC 201, write an essay about the Gross Domestic Product

For purpose of EC 201, write an essay about the Gross Domestic Product

GDP=C+I+/-X+G (Aggregate Expenditures)

Economists in the country have estimated that the GDP, based upon employment of 300M people is \$370B

Given Data:

1. Real GDP=\$330B

2. Nominal GDP=\$290B

3. GNP=\$315B

4. Average Nominal GDP(Last five years)=\$275B

5. Net imports=\$72B (assume that all countries trade in American dollars)

6. Net exports=\$65B (assume that all countries trade in American dollars)

7. Exchange rate=1.00 (American) equals 16 Cuban Pesos

8. Multiplier(given)=4

9. Consumption=\$385B

10. Investment=\$25B

11. Government Purchases=\$30B

Request:

• Define all the terms in the simplified GDP formula
• Please calculate the GDP based upon the information given
• Please determine if the calculated GDP is in EQUILIBRIUM with the projected GDP
• Why or why not is your calculation above in equilibrium of out of equilibrium
• If you presented the government what fiscal policy would you recommend that the government adopt-explain