To solve this problem, we need to use the expenditure approach to calculate the Gross Domestic Product (GDP) of Hypothetica. The expenditure approach adds up total consumption, investment, government spending, and net exports (which are exports minus imports). Here's the step-by-step calculation:
1. Personal consumption expenditure (C): This represents the total value of all goods and services consumed by households. According to the table, this amount is 100 billion dollars.
2. Gross private domestic investment (I): This includes business investments in equipment and structures, residential construction, and changes in business inventories. According to the table, this is 10 billion dollars.
3. Government expenditure on goods and services (G): This includes all government consumption and investment in goods and services. According to the table, this is 50 billion dollars.
4. Exports of goods and services (X): This is the value of all goods and services produced domestically and sold abroad. According to the table, this is 30 billion dollars.
5. Imports of goods and services (M): This is the value of all goods and services produced abroad and consumed domestically. According to the table, this is 30 billion dollars.
To find the GDP, we sum these components:
[tex]\[
GDP = C + I + G + (X - M)
\][/tex]
Substituting the given values:
[tex]\[
GDP = 100 + 10 + 50 + (30 - 30)
\][/tex]
Solving it step by step:
1. First, calculate net exports (X - M):
[tex]\[
X - M = 30 - 30 = 0
\][/tex]
2. Now, sum the rest:
[tex]\[
GDP = 100 + 10 + 50 + 0 = 160
\][/tex]
So, Hypothetica's GDP is 160 billion dollars. The correct answer is:
[tex]\[
\boxed{\$ 160}
\][/tex]
