ECONOMICS
GDP
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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$9 700
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$7700
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$10 000
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$10 700
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Detailed explanation-1: -In the question, GDP = $1, 000, Consumption = $600 and governmnet purchases = $200. Savings and investment = $1, 000 − $800 = $200. Need a fast expert’s response?
Detailed explanation-2: -Aggregate Expenditure = C + I + G + (X – M). Finally, note that this example includes income taxes; thus, people consume out of disposable income (or take-home pay). This is shown in the consumption equation below, which deducts taxes before spending.
Detailed explanation-3: -A basic formula to determine investment spending for a small business is written as: Investment spending= gross investment-depreciation. On a macro level, the formula is written as: Investment Spending = Gross Domestic Product (GDP)-Consumption (C)-Government Spending (G)-Net Exports (NX).