In the economy of Ukzten in 2010, consumption was 60% of GDP, government purchases were $212, imports were $67 and 67% of the value of exports, investment was one-half of the value of consumption. What was Ukzten's GDP in 2010?

Question

Quizplus · Accepted Answer

First, we need to find the value of exports. Since imports were 67% of the value of exports, then exports were $67/(67%) = $100.

Next, we need to find the value of investment. Investment was one-half of the value of consumption, so investment was 0.5*GDP*0.6 = 0.3*GDP.

Now we can use the expenditure approach to GDP to solve for GDP:

GDP = consumption + investment + government purchases + exports - imports

GDP = 0.6GDP + 0.3GDP + $212 + $100 - $67

Simplifying this equation, we get:

0.1GDP = $245

GDP = $2450

Therefore, the answer is C, $2450.

In the Economy of Ukzten in 2010, Consumption Was 60