In the economy of Wrexington in 2008,exports were $500,GDP was $6400,government purchases were $1500,imports were $600,and investment was $2000.What was Wrexington's consumption in 2008?

Question

Quizplus · Accepted Answer

Using the equation for GDP:
GDP = C + I + G + (X-M)
Where:
C = consumption
I = investment
G = government purchases
(X-M) = net exports (exports - imports)

Plugging in the given values:
6400 = C + 2000 + 1500 + (500-600)
6400 = C + 2400 - 100
C = 3000

Therefore, Wrexington's consumption in 2008 was $3000.

In the Economy of Wrexington in 2008,exports Were $500,GDP Was