Answer: consumption= 2500, imports = 1500, exports = 1000, net exports= -500, GDP = 2000 , investment =0, government purchases =0
Explanation:
this question is incomplete. in complete question we have to calculate consumption (C), investment (I), government purchases (G), imports (M), exports (X), net exports (NX) and gross domestic product (GDP) using the given information and abbreviation.
1. Antonio order will be considered as imports which are 50*30=1500
2. exports by US company spark plug selling to Korean are considered as X which are 200*5= 1000
3. net exports = exports - imports
NX = X - M ,
-500 = 1000-1500
in a nutshell, the economy is in deficit of 500
total C is 1500+ 1000=2500
GDP = C+ I + G + NX
GDP =2500 +0+0+ (-500)
GDP =2000
GDP is the value of final good and services which are produced within the boundary of an economy .
this question is about open economy because it includes exports and imports . this freely trade between different countries is considered as open economy .
no information is given for investment (I), government purchases (G) so these will be taken as 0
