Assume net exports are R-4180, consumption is R95 000, tax revenues are r₁9 000, government purchases are R28 500, and 2010 GDP, calculated by the expenditures approach, is r₁52 000.We can conclude that

Question

Quizplus · Accepted Answer

Using the expenditure approach, GDP can be calculated as follows:

GDP = C + I + G + (X - M) 
where C = consumption, I = investment, G = government purchases, X = exports, and M = imports.

Plugging in the given values, we get:

R152 000 = R95 000 + I + R28 500 + (X - R4 180) 
Solving for I:

I = R32 680

Therefore, private investment was R32 680. The closest answer choice is D, which is the correct answer.

Assume Net Exports Are R-4180, Consumption Is R95 000, Tax