Question

What is consumption in this economy? GDP Government Purchases Transfer Payments Exports Imports Net foreign factor income In trillions of dollars 5.0 1.0 0.2 0.4 0.5 0.4 00 Select one: O a. 3.9 trillion O b. Not enough information to compute consumption O c. 3.6 trillion O d. 4.1 trillion
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Answer #1

The correct answer would be B) not enough information to compute consumption.

After subtracting Government purchases and Net Exports( Exports- Imports) from GDP we get investment plus consumption which will be 4.1 trillions of dollars. But in the given data, one can not get to the amount of investment and consumption. Hence information is not enough to tell amount of consumption.

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