To calculate the Real GDP of the given economy in 2020, we need to add up the changes in each component of the expenditure approach.
Increase in consumption: +20 million
Decrease in investment: -5 million
Increase in government spending: +10 million
Decrease in exports: -5 million
Increase in imports: +15 million
Total change in GDP = 20 - 5 + 10 - 5 + 15 = 35 million
Real GDP in 2020 = Real GDP in 2019 + Total change in GDP
Real GDP in 2020 = 250 million + 35 million
Real GDP in 2020 = 285 million dollars
Therefore, the Real GDP of the given economy in 2020 is 285 million dollars.
Using the expenditure approach, the Real GDP of a given economy was calculated as 250 million dollars in 2019. In 2020, the economy experienced the following: An increase of 20 million dollars in consumption. A decrease of 5 million dollars in investment. An increase of 10 million dollars in government spending. The value of all exports decreased by 5 million dollars. The value of all imports increased 15 million dollars. What is the Real GDP of the given economy in 2020? (1 point) Responses 255 million dollars 255 million dollars 270 million dollars 270 million dollars 235 million dollars 235 million dollars 295 million dollars
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