Question

In an open economy, gross domestic product equals $1,970 billion, government expenditure equals $300 billion, investment equals $500 billion, and net capital outflow equals $280 billion. What is consumption expenditure?
a. $280 billion
b. $780 billion
c. $890 billion
d. $1,170 billion

Answer 1

Answer: D

If you add 300 + 500 + 280 and then subtract the answer from 1,970 you will get your answer.