In a Given Year, an Economy Has Consumption of $6000

question 15

Multiple Choice

In a given year, an economy has consumption of $6000, investment of $4000, government purchases of $3500, exports of $1500, imports of $1600, taxes of $1200, transfer payments of $1400, and depreciation of $1300. What is the GDP?

• A) $11,200
• B) $13,400
• C) $14,600
• D) $17,300

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Definitions:

Recipient Spouse

The spouse who receives alimony or similar payments from the other spouse in a divorce settlement.

Child Support

Payments mandated by a divorce decree or agreement intended for the financial support of the taxpayer's children.

Alimony

Payments made to a spouse or former spouse under a divorce or separation agreement, which may be deductible by the payer and taxable to the recipient under certain conditions.

Moving Expenses

Costs associated with relocating, such as transportation and packing, which may be deductible from taxable income under certain conditions for employment-related moves.