In the economy of Talikastan in 2015, consumption was $3000, GDP was $5500, government purchases were $1000, imports were $1000, and investment was $1000. What were Talikastan's exports in 2015?

Question

Quizplus · Accepted Answer

To find out the value of exports, we can use the expenditure approach of calculating GDP, which is given by:

GDP = C + I + G + (X-M)

where:
C = consumption
I = investment
G = government purchases
X = exports
M = imports

Substituting the given values:
$5500 = $3000 + $1000 + $1000 + (X-$1000)

Solving for X, we get:
X = $5500 - $3000 - $1000 - $1000
X = $1500

Therefore, Talikastan's exports in 2015 were $1500.

In the Economy of Talikastan in 2015, Consumption Was $3000