Question

b. If households spend $70 billion on goods and $60 billion on services, how much in revenues do businesses receive in the product market?

Answer 1

`\$130` billion

Explanation:

Amount spend by households on goods =
`\$70` billion

Amount spend by households on services =
`\$60` billion

We need to find total amount spend by households on goods and services which is equivalent to finding the revenue that businesses receive in the product market.

Total revenue that businesses receive in the product market = Amount spend by households on goods + Amount spend by households on services =
`\$70+\$60=\$130` billion