Question

Compute the domestic spending of

a nation given: total exports =
$6,500 million, total imports =
$8,500 million, and gross domestic
product (GDP) = $12,500 million.

Answer 1

Step-by-step explanation:

To compute the domestic spending of a nation, we can use the equation:

GDP = Consumption + Investment + Government Spending + Net Exports

where Net Exports = Exports - Imports

Rearranging the equation, we have:

Consumption + Investment + Government Spending = GDP - Net Exports

Now, substituting the given values, we get:

Consumption + Investment + Government Spending = $12,500 million - ($6,500 million - $8,500 million)

Simplifying the right-hand side, we get:

Consumption + Investment + Government Spending = $14,500 million

Therefore, the domestic spending of the nation is $14,500 million.