Suppose That GDP Is Equal to $8 Trillion

question 320

Multiple Choice

Suppose that GDP is equal to $8 trillion.If net exports are -$1 trillion,consumption is $5 trillion,and investment is $2 trillion it follows that

• A)government purchases are zero.
• B)government purchases are $1 trillion.
• C)government purchases are $2 trillion.
• D)government purchases are $3 trillion.

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Definitions:

Valid Obligation

A duty or commitment that is legally binding and enforceable by law.

Capital Investment

Funds spent by a company to acquire or upgrade physical assets, such as property, industrial buildings, or equipment, to improve its business capacity or efficiency.

Partnership Creditors

Individuals or entities to whom a partnership owes money or has some form of legal financial obligation.

Pro Rata

In proportion; according to the calculated share or division.