The following table provides data for an economy in a certain year._ Given the d

Question

The following table provides data for an economy in a certain year._

Given the data in the table, compute the government purchases component of GDP.

Select one:

a. 200

b. 500

c. 700

d. 900

1,000 600 700 Consumption expenditures Imports Government purchases of goods and services Construction of new homes and apartments Sales of existing homes and apartments Exports Government payments to retirees Household purchases of durable goods Beginning-of-year inventory End-of-year inventor Business fixed investment 600 500 200 300 500 600 300

Explanation / Answer

c) 700

Because 700 is the only component of government expenditure that contributes in the GDP.

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