Question

*7) What is budgeted cost of goods sold for 2016?*

A) $720,000
B) $582,400
C) $691,200
D) $640,000
Objective 6.4

Answer 1

The budgeted cost of goods sold for 2016 cannot be determined from the given information.

Step-by-step explanation:

The budgeted cost of goods sold for 2016 can be calculated using the GDP formula: GDP = C + I + G + (X - M). From the information provided, we know that consumption spending

(C) is $2,000 billion and business investment (I) is $50 billion.

However, the values for government purchases (G) and net exports (X - M) are not given, so we cannot determine the exact dollar value of GDP and thus the budgeted cost of goods sold for 2016.