The following are national income account data for a hypothetical economy in billions of dollars: government purchases ($1,050); personal consumption expenditures ($4,800); imports ($370); exports ($240); gross investment ($1,130).Personal consumption expenditures are approximately what percentage of this economy?
A)60 percent
B)65 percent
C)70 percent
D)75 percent

Question

Quizplus · Accepted Answer

To find the percentage of personal consumption expenditures, first calculate the GDP: GDP = C + I + G + (X - M) = $4,800 + $1,130 + $1,050 + ($240 - $370) = $6,850. Then, calculate the percentage: ($4,800 / $6,850) * 100 ≈ 70%.

The Following Are National Income Account Data for a Hypothetical