Assume that net exports are -$340,private investment is $1500,tax revenues are $800,government purchases are $2000,and GDP - using the expenditure approach - is $9,000.In this case,consumption expenditures must be

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Quizplus · Accepted Answer

Using the expenditure approach, GDP = Consumption + Investment + Government Purchases + Net Exports. Plugging in the values: $9,000 = Consumption + $1,500 + $2,000 - $340. Solving for Consumption gives $5,840.

Assume That Net Exports Are -$340,private Investment Is $1500,tax Revenues