Last year in the country of Nerf imports equaled exports. Nerfʹs GDP was $500 million, its consumer expenditure was $380 million, and its investment was $20 million. Nerfʹs government expenditure on goods and services were ________.

Question

Quizplus · Accepted Answer

To find government expenditure, use the GDP formula: GDP = C + I + G + (X-M). Given imports equal exports (X-M = 0), GDP = C + I + G. Plugging in the values: $500 million = $380 million + $20 million + G, solving gives G = $100 million.

Last Year in the Country of Nerf Imports Equaled Exports