If GDP (measured in billions of current dollars)is $1,600,consumption is $891,investment is $318,and net exports are $24,then government purchases are:
A) $367.
B) $1,233.
C) $391.
D) $1,258.

Question

Quizplus · Accepted Answer

To find government purchases, use the GDP formula: GDP = Consumption + Investment + Government Purchases + Net Exports. Plug in the values: $1,600 = $891 + $318 + Government Purchases + $24. Solving for Government Purchases gives $367.

If GDP (Measured in Billions of Current Dollars)is $1,600,consumption Is