Question

In a small, closed economy, national income (GDP) is $ 750.00 million for the current month. Individuals have spent $ 300.00 million on the consumption of goods and services. They have paid a total of $ 250.00 million in taxes, and the government has spent $ 400.00 million on goods and services this month. Use this information and the national income identity to answer the questions. How much is spent on investment in this economy

Answer 1

Answer:

$50 million

Explanation:

Gross domestic product is the sum of all final goods and services produced in an economy within a given period which is usually a year.

An economy is closed if it doesn't trade with other countries.

GDP = Consumption spending + Investment spending + Government Spending

$750 million = $300 million + Investment spending + $400 million

Investment spending = $50 million

I hope my answer helps you