Question 7 2 pts Suppose we have the country of Lucasopolis and all its economic

Question

Question 7 2 pts Suppose we have the country of Lucasopolis and all its economic activity for 2018. People in Lucasopolis spend $100,000,000 on food, cars and housing produced in Lucasopolis in 2018. Firms in Lucasopolis spend $300,000,000 on equipment produced in Lucasopolis in 2018. : Michelle-stan's government spends $100,000.000 on uniforms produced in Lucasopolis in 2018. The government of Lucasopolis spends $100,000.000 on concrete produced in Michelle-stan in 2018 : People in Lucasopolis also spend $50,000,000 in 2018 to hear the speeches of the country's President - Lucas S. (she performs the speeches in Lucasopolis) Please note that Michelle-stan is a separate country According to the numbers above, what percent of Lucasopolis' GDP in 2018 is consumption?

Explanation / Answer

GDP = Expenditure on food, cars, housing etc. + Expenditure by firms+ Expenditure to hear speech+ Expenditure made by Michelle-stans in purchasing uniform – expenditure by govt on concrete in Michelle-stan.

GDP = 100,000,000+300,000,000+100,000,000-100,000,000+50,000,000

GDP = 450,000,000

Consumption percent = (150,000,000/450,000,000)*100

Consumption percent =33.33%

Correct answer is option B

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