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

Question

Quizplus · Accepted Answer

Nerf's GDP ($500 million) is the sum of consumer expenditure ($380 million), investment ($20 million), government expenditure, and net exports (exports minus imports, which is zero since imports equaled exports). Solving for government expenditure: $500 million = $380 million + $20 million + Government expenditure + $0 (net exports), so Government expenditure = $100 million.

Last Year in the Country of Nerf Imports Equaled Exports