# Using the table in the link below, what is the expenditure-based estimate of the economy's GDP? http://postimage.org/image/uxa0gr3cf/

### 1 Answer | Add Yours

Using the expenditure method, we can calculate an economy’s gross domestic product by using the following equation:

GDP = Government spending + Personal Consumption + Investments + Net Exports.

In the table in the link below, government purchases are C$43 billion. Personal consumption is C$85 billion. Investment is C$35 billion. Because we are looking at gross domestic product and not net domestic product, we use the gross investment number and not the net. Net exports are C$-1 billion. This is because imports were C$15 billion and exports were C$14 billion. Net exports are found by subtracting imports from exports.

To estimate GDP, then, we add these. 43 + 35 + 85 is 163. We then subtract 1 because net exports were negative. That gives us 162.

**Therefore, our estimate for GDP in this economy, using the expenditures approach, is C$162 billion.**