If real GDP in a closed economy is $40 billion,consumption is $20 billion,and government purchases are $10 billion,what is investment?

Question

Quizplus · Accepted Answer

In a closed economy, the formula for GDP is GDP = Consumption + Investment + Government Spending. Given that GDP is $40 billion, Consumption is $20 billion, and Government Spending is $10 billion, we can solve for Investment: $40 billion = $20 billion + Investment + $10 billion. Therefore, Investment = $10 billion.

If Real GDP in a Closed Economy Is $40 Billion,consumption