Question

work 2: Chapters 6 X 6 Chapter 6: Consumer Price Indes X Assignments: MUS 105-501 X + /26505/quizzes/88635/take 7 words Question 5 3 pts Use the following data: - GDP = $1,701 billion; Durable goods - $200 billion, nondurable goods = $350 billion services - $600 billion; ---- Investment inventories + housing - $200 billion; -Government purchases - $400 billion; - Exports - $30 billion. What does import equal to? Import - $ (3 points) HTML Editon BIVAA. IE *311xx - Dop 2 NV M T 1: 12pt - Paragraph - | # 1 $ % &

Answer 1

Consumption = durable goods + nondurable goods + Services

Consumption = $200 billion +$350 billion + $600 billion

Consumption (C) = $1150 billion.

Investment spending (I) = $200 billion.

Note: Investment spending includes investment, inventories , housing.

Government purchases (G) = $400 billion

Exports (X) = $30 billion.

Import (M) = ?

GDP = C + I + G + X - M

$1701 billion = $1150 billion + $200 billion + $400 billion + $30 billion - M

$1701 billion = $1780 billion - M

M = $1780 billion - $1701 billion

M = $79 billion

Import equal to $79 billion.