Consider the information about the economy of Pakistan. Note that the currency of Pakistan is the rupee. The government purchases: 2.60 trillions of rupees. Individuals consume: 10.60 trillions of rupees. Individuals save: 5.04 trillions of rupees. Businesses invest: 1.50 trillions of rupees. Foreigners spend: 0.70 trillions of rupees to purchase Pakistani firms. Pakistan imports: 2.69 trillions of rupees. Pakistan exports: 1.40 trillions of rupees. Calculate Pakistan's GDP. Assume that the values are all current and no conversions need to be made. Give your answer in terms of trillions of rupees, and round to two decimals.

GDP of Pakistan is 13.41 trillion of Rupees

Explanation:

GDP = C + I + G + Net Exports

GDP = 10.6 + 1.5 + 2.6 + (1.4 Exports - 2.69 Imports) =

Where C stands for consumption, I for investment by the businesses, G is the government spending or purchases, Net Exports is the difference between exports X and imports M.

Now:

G-Government spending or Govt. Purchases are Rs 2.60 trillions

I-Investment by the businesses are Rs 1.50 trillions

C-Consumption was Rs 10.6 trillions

Net Exports-(Exports X - Imports M) was the difference of exports Rs 1.4 trillions and imports of Rs 2.69 trillions

By putting the values we have:

GDP= 10.6 + 1.5 + 2.6 + (1.4 Exports - 2.69 Imports)= 13.41 trillion of Rupees

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