The GDP of Ritzland during a particular year was $120,000. If the expenditure on investment was $16,000, the expenditure incurred by the government was $35,000, the value of exports was $10,000, and the value of imports was $22,000, then the expenditure on consumption was ________.

Question

Quizplus · Accepted Answer

The GDP (Gross Domestic Product) can be calculated using the formula: GDP = Consumption + Investment + Government Spending + (Exports - Imports). Plugging in the given values: $120,000 = Consumption + $16,000 + $35,000 + ($10,000 - $22,000). Solving for Consumption gives us $120,000 = Consumption + $39,000. Therefore, Consumption = $120,000 - $39,000 = $81,000.

The GDP of Ritzland During a Particular Year Was $120,000