Answer:
The total spending on all final goods and services produced is equal to $154,000.
Explanation:
The total spending on all final goods and services produced can be calculated as follows:
Total spending = Amount paid by consumers to farmer for flour + Amount paid by consumers to baker for bread + Government spending on hiring consumers ...................... (1)
Where;
Amount paid by consumers to farmer for flour = $20,000
Amount paid by consumers to baker for bread = $120,000
Government spending on hiring consumers = $14,000
Substituting the values into equation (1), we have:
Total spending = $20,000 + $120,000 + $14,000 = $154,000
Therefore, the total spending on all final goods and services produced is equal to $154,000.
