62.1k views
5 votes
Calculate consumer spending given the following information:

GDP = $96 million

Government spending = $19 million

Financial investment spending = $12 million

Investment spending = $18 million

Net exports = $2 million

User Ggagliano
by
7.9k points

2 Answers

5 votes

AE or GDP = C + I + G + (X-M)
Use this formula, try it out.
User ISONecroMAn
by
8.8k points
7 votes

Answer:

The consumer spending is $57 million.

Explanation:

Given information: GDP = $96 million, Government spending = $19 million, Financial investment spending = $12 million, Investment spending = $18 million, Net exports = $2 million.

The formula for gross domestic product (GDP ) is


GDP=C+I+G+NX

where, C is consumption, I is Investment, G is government + NX is net Exports.

Substitute GDP=96, I=18, G=19 and NX=2 in the above formula.


96=C+18+19+2


96=C+39

Subtract 39 from both the sides.


96-39=C+39-39


57=C

Therefore the consumer spending is $57 million.

User BarryBostwick
by
8.1k points

No related questions found

Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

9.4m questions

12.2m answers

Categories