Question

Durable goods $3,000 Services 6,000 Business purchases of capital goods 400 Fixed investment 850 Exports 600 Imports 800 Nondurable goods 700 Inventory investment 200 Government transfer payments 100 Purchases of new residential housing 450 Government purchases 900 Refer to Exhibit 7-3. Consumption is equal to

Answer 1

$9,700

Step-by-step explanation:

The computation of the consumption is shown below;

= Durable goods + Services + Non-durable goods

= $3,000 + $6,000 + $700

= $9,700

We simply added the durable goods, services and the non-durable goods so that the consumption could be come

Hence, the consumption is $9,700

Therefore the same is to be considered