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Answer to Question #139364 in Macroeconomics for Musole Kapaku
Question #139364
A closed economy with household, business and government sectors. Individuals
receive income of k760 and pay taxes of k100 to the government: consumer spending
is k560: gross investment is k110: depreciation is k40: government spending is k130.
receive income of k760 and pay taxes of k100 to the government: consumer spending
is k560: gross investment is k110: depreciation is k40: government spending is k130.
Expert's answer
Consumption (C) - K560
Government Spending (G) - K130
Taxes (T) - K100
Investment (I) - K110
Depreciation (D) - K40
Indiidual Income (i) - K760
GDP = C + G + I + NX
GDP = 560 + 130 +110 + 0
GDP = K800
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