Question

For a hypothetical economy in a given year, GDP was $10,000, consumption equaled $9,800, investment equaled $125, goods exported equaled $255, and goods imported equaled $500. What was government spending equal to?

Answer 1

Answer: $320

Explanation:

Given that,

GDP = $10,000

Consumption = $9,800

Investment = $125

Goods exported = $255

Goods imported = $500

Net exports = Exports - Imports

                    = $255 - $500

                    = -($245)

GDP = Consumption + Investment + Government Spending + Net exports

$10,000 = $9,800 + $125 + Government Spending + (-$245)

Government Spending = $10,000 - $9,800 - $125 + $245

                                      = $320

Answer 2

The government spending of the hypothetical economy is $320.

What is the government spending?

If gross domestic product is calculated using the expenditure approach, the value of  gross domestic product is the sum of : Consumption spending by households + Investment spending by businesses + Government spending +  exports – imports

Government spending = GDP - ( Consumption spending by households + Investment spending by businesses + Government spending +  exports – imports)

$10,000 - $9,800 - $125 - 255 + 500 = 320

To learn more about GDP, please check: https://brainly.com/question/15225458