Scenario 26-1.Assume the following information for an imaginary,closed economy.
GDP = $110,000;consumption = $70,000;private saving = $8,000;national
saving = $12,000.
-Refer to Scenario 26-1.For this economy,government purchases amount to

Question

Quizplus · Accepted Answer

Government purchases can be calculated as follows: 
Government purchases = GDP - consumption - private saving - national saving 
Government purchases = $110,000 - $70,000 - $8,000 - $12,000 
Government purchases = $20,000 
Therefore, the best choice is C), which is the closest option to $20,000.