In the economy of Wrexington in 2008,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 Wrexington's GDP in 2008?

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Quizplus · Accepted Answer

GDP = C + G + I + (X - M)= 0.6GDP + 212 + 0.5(0.6GDP) + (X - 67)= 1.1GDP + 212 + (X - 67)= 1.1GDP + 212 + 0.33X= 1.1GDP + 212 + 0.33(212)= 1.1GDP + 212 + 70= 1.1GDP + 282= 1.1GDP = 282= GDP = 282/1.1= GDP = $256.36

In the Economy of Wrexington in 2008,consumption Was 60% of GDP,government