Ask Question
14 November, 17:27

Suppose that this year a small country has a GDP of $100 billion. Also assume that Ig = $30 billion, C = $60 billion, and Xn = - $10 billion. How big is G?

+4
Answers (1)
  1. 14 November, 19:51
    0
    G = $20 Billion

    Explanation:

    Given that

    C = $60 billion

    GDP = $100 billion

    Gross Investment = $30 billion

    Net export = $10 billion

    Recall that

    GDP = C + Ig + G + Xn

    Therefore

    G = GDP - (C + Ig + Xn)

    G = 100 - (60 + 30 + [-10])

    G = 100 - (90 - 10)

    G = 100 - 80

    G = 20

    Thus, government expenditure is $20 billion.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Suppose that this year a small country has a GDP of $100 billion. Also assume that Ig = $30 billion, C = $60 billion, and Xn = - $10 ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers