Question

Suppose GDP in this country is $1,330 million. Enter the amount for government purchases. National Income Account Value (Millions of dollars) Government Purchases ( G ) A. Taxes minus Transfer Payments ( T ) B. 455 Consumption ( C ) C. 700 Investment ( I ) 280

Answer 1

Answer:

$350 million

Explanation:

the formula for calculating GDP is consumption + investment + government spending + net exports, since apparently this is a closed economy with no exports or imports, the formula should be:

GDP = C + I + G

• GDP = $1,330 million
• C = $700 million
• I = $280 million

G = $1,330 - $700 - $280 = $350 million