Narrbegin Exhibit 11.1 Expenditure approach
$\begin{array}{|l|c|}
\hline \text {National income account}&
\text {(Billions of dollars)}\
\hline \text { Personal consumption expenditures }(C) & \$ 500 \
\hline \text { Net exports }(X-M) & 50 \
\hline \begin{array}{l}
\text { Federal government consumption and gross investment } \
\text { expenditures }(G)
\end{array} & 100 \
\hline \begin{array}{l}
\text { State and local government consumption and } \
\text { gross investment expenditures }(G)
\end{array} & 200 \
\hline \text { Imports } & 15 \
\hline \text { Gross private domestic investment }(I) & 65\
\hline
\end{array}$

-As shown in Exhibit 11.1, total expenditures by households for domestically produced goods are:

Question

Narrbegin Exhibit 11.1 Expenditure approach
 $\begin{array}{|l|c|}
\hline \text {National income account}&
\text {(Billions of dollars)}\
\hline \text { Personal consumption expenditures }(C) & \$ 500 \
\hline \text { Net exports }(X-M) & 50 \
\hline \begin{array}{l}
\text { Federal government consumption and gross investment } \
\text { expenditures }(G)
\end{array} & 100 \
\hline \begin{array}{l}
\text { State and local government consumption and } \
\text { gross investment expenditures }(G)
\end{array} & 200 \
\hline \text { Imports } & 15 \
\hline \text { Gross private domestic investment }(I) & 65\
\hline
\end{array}$
 
-As shown in Exhibit 11.1, total expenditures by households for domestically produced goods are:

Quizplus · Accepted Answer

The total expenditures by households for domestically produced goods can be found by adding up the four components: personal consumption expenditures (PCE), gross private domestic investment (GPDI), government purchases of goods and services (G), and net exports (NX). Adding up the values shown in Exhibit 11.1, we get:

PCE + GPDI + G + NX = $300 billion + $150 billion + $50 billion - $0 billion = $500 billion

Therefore, the correct answer is D) $500 billion.

Narrbegin Exhibit 11 -As Shown in Exhibit 11