GDP in an economy is $11,050 billion. Consumer expenditures are $7,735 billion, government purchases are $1,989...

GDP in an economy is $11,050 billion. Consumer expenditures are $7,735 billion, government purchases are $1,989 billion, and gross investment is $1,410 billion. Net exports must be _____.

Multiple Choice

$53 billion
− $47 billion
− $84 billion
− $161 billion

Solutions

Expert Solution

As we can see that

GDP = $11050

Total Consumption = $7735

Total Investment = $1410

Government purchases = $1989

So , GDP = Consumption + Investment + Government Purchases + Net Export

11050 = $7735 + $1410 + $1989 + Net Export

11050 = $ 11134 + Net Export

Net Export = 11050 - 11134

Net Export = - $84 billion

Hence (B)part is a correct answer

( Note - Please hit like , Thanks )

Rahul Sunny answered 1 year ago

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