Question
In: Economics
1. Use the information in this table to sketch a business cycle and to label a...
1. Use the information in this table to sketch a business cycle and to label a downturn and a recovery.
|
2. |
(Table) The table that follows shows components of aggregate
expenditures. What is GDP according to the expenditure approach?
|
What is GDP according to the expenditure approach?
Solutions
Expert Solution
1. 
2. According to the expenditure approach, GDP= C+I+G+(X-M) where C=consumption expenditure; I=investment by firms and houses; G=government purchases; X=exports M=imports
GDP= (30+50)+(10+15+5)+10+(20-15)= $125
Rahul Sunny answered 2 years agoRelated Solutions
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