Exhibit 11-8 GDP data (billions of dollars) In Exhibit 11-8, and using the expenditures approach, compute personal consumption expenditures. Which of the following is correct?

Question

Exhibit 11-8  GDP data (billions of dollars)  In Exhibit 11-8, and using the expenditures approach, compute personal consumption expenditures. Which of the following is correct?

Quizplus · Accepted Answer

Personal consumption expenditures (C) can be calculated as the sum of expenditures on durable goods, nondurable goods, and services. From Exhibit 11-8, these values are:
- Durable goods: $1,113 billion
- Nondurable goods: $2,491 billion
- Services: $3,996 billion

Therefore, C = $1,113 billion + $2,491 billion + $3,996 billion = $6,600 billion. So, the correct answer is B.

Exhibit 11-8 GDP Data (Billions of Dollars) in Exhibit 11-8