The country of Sylvania has a GDP of $900,investment of $200,government purchases of $200,and net capital outflow of negative $100.This means that

Question

Quizplus · Accepted Answer

In the calculation of GDP = C + I + G + NX
where C = Consumption
I = Investment
G = Government Purchases
NX = Net Exports (Exports - Imports) or in this case, since it is negative, it means Net Capital Outflow.

Substituting the given values, we have:
900 = C + 200 + 200 - 100

Solving for C, we get:
C = 600

Therefore, the answer is B, consumption equals $600.

The Country of Sylvania Has a GDP of $900,investment of $200,government