Assume that a country has a closed economy that has only three goods/services. That is, there is no trade with other countries,

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3 years ago

12

Assume that a country has a closed economy that has only three goods/services. That is, there is no trade with other countries,

so the economy has consumption, investment, and government spending, but no net exports. In a given year, the economy produces thirty haircuts that cost $10 each; two factory machines that cost $100 each; one highway repair that costs $500 13. What is total GDP for this economy? 14. What percent of GDP is consumption? ________________________________________ 15. What percent of GDP is investment? ____________________________ 16. What percent of GDP is government spending? _________________________________ Exclusions of GDP and an Examp

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