Knowee
Questions
Features
Study Tools

Consider the following figures: the GDP of an economy is $300 billion, household consumption is $85 billion, government spending is $140 billion, investments are $50 billion and total imports are $100 billion. What will be the value of total exports?$125 billion$75 billion$25 billion$50 billion

Question

Consider the following figures: the GDP of an economy is 300billion,householdconsumptionis300 billion, household consumption is 85 billion, government spending is 140billion,investmentsare140 billion, investments are 50 billion and total imports are 100billion.Whatwillbethevalueoftotalexports?100 billion. What will be the value of total exports?125 billion75billion75 billion25 billion$50 billion

🧐 Not the exact question you are looking for?Go ask a question

Solution

The GDP (Gross Domestic Product) of a country is calculated using the formula:

GDP = Consumption + Government Spending + Investments + (Exports - Imports)

Given the figures in the question, we can substitute the known values into the formula:

300billion=300 billion = 85 billion (Consumption) + 140billion(GovernmentSpending)+140 billion (Government Spending) + 50 billion (Investments) + (Exports - $100 billion)

Solving for Exports, we get:

Exports = GDP - Consumption - Government Spending - Investments + Imports Exports = 300billion300 billion - 85 billion - 140billion140 billion - 50 billion + 100billionExports=100 billion Exports = 125 billion

So, the value of total exports is $125 billion.

This problem has been solved

Similar Questions

If GDP (measured in billions of current dollars) is $5,465 and the sum of consumption, investment, and government purchases is $5,496, while exports equal $673, imports are:

If the value of a country's imports are $46 billion and the value of its exports are $57 billion, then what is the value of its balance of trade?Multiple choice question.–$11 billion$11 billion$103 billionCannot be determined without knowing its exchange rate.

Suppose the total market value of all final goods and services produced this year in Economy X is 4 million. Of the 4 million dollars' worth of goods, 3 million is sold and 1 million is held in inventory. For this year, the GDP for Economy X is:Group of answer choices4 million3 million1 million7 million

Assume a small open economy's domestic output (Y) is $750 million, its domestic spending is $850 million, and total imports are $150 million. Therefore, the country runs a trade ________, and total exports are ________.a.deficit; $50 millionb.surplus; $250 millionc.surplus; $50 milliond.deficit; $250 million

Select Any One Of the Following Options: The GDP of a small country: $ 100 billion. Gross Private investment: $30 billion. Consumption expenditure: $60 billion and Net export: (minus) $ 10 billion. What would be the value of G?$30 billion$ 20 billion0$ 10 billion

1/3

Upgrade your grade with Knowee

Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.