Question

Suppose GDP in this country is $900 million. Enter the amount for consumption. National Income Account Value (Millions of dollars) Government Purchases ( G ) 250 Taxes minus Transfer Payments ( T ) 325 Consumption ( C ) Investment ( I )

Answer 1

Answer:

Consumption ( C ) = $325 million

Explanation:

Given:

GDP = $900 million:

Government Purchases ( G ) = $250 million

Taxes minus Transfer Payments ( T ) = $325 million

Investment ( I ) = $275 million

Find:

Consumption ( C )

Computation:

GDP = C + I + G

$900 million = Consumption ( C ) + $250 million + $325 million

Consumption ( C ) = $900 million - [$250 million + $325 million]

Consumption ( C ) = $325 million