Aggregate Data and Nominal GDP Calculation for Country X (2018)

Aggregate Data for Country X (2018)

• Consumption Spending: 1,000 million dollars

• Employee Compensation: 1,100 million dollars

• Government Spending: 400 million dollars

• Interest Payments: 125 million dollars

• Investment Spending: 300 million dollars

• Net Exports: -100 million dollars

• Profits: 200 million dollars

• Rents: 175 million dollars

• Savings: 400 million dollars

Calculation of Nominal GDP

To calculate the nominal GDP for Country X in 2018, we sum the relevant components of aggregate spending, which includes consumption, investment, government spending, and net exports.

1. Components of Nominal GDP Calculation:

   • Consumption Spending (C): 1,000 million dollars

   • Investment Spending (I): 300 million dollars

   • Government Spending (G): 400 million dollars

   • Net Exports (NX): -100 million dollars

   The formula for calculating Nominal GDP (Y) is given by:
   $<br>Y = C + I + G + NX<br>$

2. Plug in the Values:

   • Substitute the values into the formula:
     $<br>Y = 1,000 + 300 + 400 + (-100)<br>$

   • Perform the arithmetic:
     $<br>Y = 1,000 + 300 + 400 - 100<br>$
     $<br>Y = 1,000 + 300 + 400 - 100 = 1,600 ext{ million dollars}<br>$

Thus, the nominal GDP for Country X in 2018 is 1,600 million dollars.