Question

GDP is $12 trillion this year in a closed economy. Consumption is $8 trillion and government spending is $2 trillion. Taxes are $0.5 trillion. How much is investment spending

Answer 1

$2 trillion

Step-by-step explanation:

In a closed economy GDP is $12 trillion

Consumption is $8 trillion

Government spending is $2 trillion

Taxes is $0.5 trillion

Therefore the investment spending can be calculated as follows

= $12 trillion - $8trillion-$2trillion

= $2 trillion

Hence investment spending is $2 trillion