Question

Last year in Candamica, consumption expenditure was $20 billion, interest, rent, and profit were $2.5 billion, government expenditure on goods and services was $7 billion, net exports of goods and services was $5 billion, and investment was $2 billion. Hence total expenditure was:______

a) $34 billion.
b) $36.5 billion.
c) $34.5 billion.
d) $24.5 billion

Answer 1

Answer is A. $34 billion.

Refer below.

Step-by-step explanation:

Last year in Candamica, consumption expenditure was $20 billion, interest, rent, and profit were $2.5 billion, government expenditure on goods and services was $7 billion, net exports of goods and services was $5 billion, and investment was $2 billion. Hence total expenditure was: $34 billion.

Answer 2

a) $34 billion.

Step-by-step explanation:

Total Expenditure=Y=C+I+G+NX

= 20+2+7+5

= 34