The table below contains data for country A for the year 2010.

Household purchases of durable goods $1293

Household purchases of nondurable goods $1717

Household purchases of services $301

Household purchases of new housing $704

Purchases of capital equipment $310

Inventory changes $374

Purchases of new structures $611

Depreciation $117

Salaries of government workers $1422

Government expenditures on public works $553

Transfer payments $777

Foreign purchases of domestically produced goods $88

Domestic purchases of foreign goods $120

a. What was country A's GDP in 2010?

b. What was country A's consumption in 2010?

(a) Country A's GDP = $7253

(b) Country A's consumption = $3311

Explanation:

Given Data;

The data is tabulated below

Household purchases of durable goods $1293

Household purchases of nondurable goods $1717

Household purchases of services $301

Household purchases of new housing $704

Purchases of capital equipment $310

Inventory changes $374

Purchases of new structures $611

Depreciation $117

Salaries of government workers $1422

Government expenditures on public works $553

Transfer payments $777

Foreign purchases of domestically produced goods $88

Domestic purchases of foreign goods $120

(a) country A's GDP in 2010:

GDP which means gross domestic Product simply means the market value of final goods that is manufactured within a particular area over a period of time.

the formula of GDP is given as;

GDP = private consumption + gross investment + government spending + (exports - imports)

From the table above,

Private consumption = $1293 + $1717

+ 301 + $704 = $4015

Gross investment = $310 + $374 + $611 = $1295

Government spending = $1422 + $553 = $1975

Exports - Imports = $88 - $120 = $-32

Substituting into the formula, we have

GDP = $4015 + $1295 + $1975 + $-32

GDP = $7253

(b) Country A's consumption:

Country A's consumption = Household purchases of durable goods + Household purchases of nondurable goods + Household purchases of services

Country A's consumption = $1293

+ $1717 + $301

= $3311