Question

Suppose that GDP is $12 million, where consumer spending is $4 million,

investment spending is $1 million, Government spending is $4 million and
exports are $3 million. How much is spending on imports?
Select one:
$0
$2 million
$1 million
$3 million

Answer 1

$0

Explanation:

GDP is calculated as the sum of consumer spending, investment spending, government spending, and net exports (exports minus imports). In this case, GDP is $12 million, consumer spending is $4 million, investment spending is $1 million, government spending is $4 million and exports are $3 million. So, the equation for GDP becomes:

12=4+1+4+(3−Imports)

Solving for imports, we get:

Imports=3−12+4+1+4=0

So, the spending on imports is $0. so i think $0

Answer 2

$0

Explanation:

To determine the amount of spending on imports, we need to consider the components of GDP. GDP (Gross Domestic Product) is the total value of goods and services produced within a country's borders in a given time period. It is calculated using the following formula:

GDP = Consumer Spending + Investment Spending + Government Spending + (Exports − Imports)

In this case, we are given the values of consumer spending ($4 million), investment spending ($1 million), government spending ($4 million), and exports ($3 million). We can substitute these values into the formula and solve for imports:

$12 million = $4 million + $1 million + $4 million + ($3 million − Imports)

Rearranging the equation to solve for imports:

Imports = $12 million − $4 million − $1 million − $4 million − $3 million

Imports = $12 million − $12 million

Imports = $0

Therefore, the spending on imports in this scenario is $0.