Question

Suppose GDP in this country is $780 million. Enter the amount for consumption. National Income Account Value (Millions of dollars) Government Purchases ( G ) 200 Taxes minus Transfer Payments ( T ) 260 Consumption ( C ) Investment ( I ) 280

Answer 1

$300 million

Step-by-step explanation:

Gross domestic product refers to the sum of consumption expenditure, government expenditure and Investment expenditure.

Therefore, the value of consumption is calculated as follows:

GDP = Consumption + Investment + Government purchases

$780 = Consumption + $280 + $200

Consumption = $780 - $280 - $200

= $300 million