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Calculate consumer spending given the following information:


GDP = $96 million


Government spending = $19 million


Financial investment spending = $12 million


Investment spending = $18 million


Net exports = $2 million

Verified Answer :

Aliwohaish12


AE or GDP = C + I + G + (X-M)
Use this formula, try it out.

Answer:

The consumer spending is $57 million.

Step-by-step explanation:

Given information: GDP = $96 million, Government spending = $19 million, Financial investment spending = $12 million, Investment spending = $18 million, Net exports = $2 million.

The formula for gross domestic product (GDP ) is

\(GDP=C+I+G+NX\)

where, C is consumption, I is Investment, G is government + NX is net Exports.

Substitute GDP=96, I=18, G=19 and NX=2 in the above formula.

\(96=C+18+19+2\)

\(96=C+39\)

Subtract 39 from both the sides.

\(96-39=C+39-39\)

\(57=C\)

Therefore the consumer spending is $57 million.

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