In the economy of Wrexington in 2008,consumption was $5300,GDP was $8800,government purchases were $1800,imports were $500,and investment was $2000.What were Wrexington's exports in 2008?

Question

Quizplus · Accepted Answer

We can use the equation

GDP = Consumption + Investment + Government Purchases + Exports - Imports

to solve for exports.

Substituting in the given values, we get

$8800 = $5300 + $2000 + $1800 + Exports - $500

Simplifying, we get

$8800 = $9600 + Exports

Subtracting $9600 from both sides, we get

Exports = -$800

This negative value indicates that Wrexington is importing more than it is exporting. However, since the question asks for the value of exports (not net exports), we need to take the absolute value of this answer.

Therefore, the answer is C) $200.

In the Economy of Wrexington in 2008,consumption Was $5300,GDP Was