If a country has a GDP of $10,000, consumer spending of $6,000, investment spending of $1,000, government spending of $4,000, and exports of $2,000, then its imports must be:
A) $1,000.
B) $2,000.
C) $3,000.
D) $4,000.

Question

Quizplus · Accepted Answer

The GDP (Gross Domestic Product) of a country is calculated using the formula: GDP = C + I + G + (X - M), where C is consumer spending, I is investment spending, G is government spending, X is exports, and M is imports. Plugging in the given values: $10,000 = $6,000 + $1,000 + $4,000 + ($2,000 - M). Solving for M, we find that imports (M) must be $3,000 to balance the equation.

If a Country Has a GDP of $10,000, Consumer Spending