In the economy of Ukzten in 2010, consumption was one-half of GDP, government purchases were $2000 more than investment, investment was one-sixth of GDP, and the value of imports exceeded the value of exports by $500. What was Ukzten's GDP in 2010?

Question

Quizplus · Accepted Answer

GDP = C + I + G + (X - M)= (1/2)GDP + (1/6)GDP + (2000 + 1/6)GDP + (-500)= (5/6)GDP + 2000 - 500= (5/6)GDP + 1500= GDP = 1500 * 6/5= GDP = $9000

In the Economy of Ukzten in 2010, Consumption Was One-Half