Question: Consider the formula: GDP = C + I + G + ( x - M ) A country has a 5 billion increase in government

Consider the formula: GDP =C+I+G+(x-M)
A country has a 5 billion increase in government spenc withral 10 billion decrease in personal consumption. As nothing else thas changed, what happened to GDP?
Consider the formula: GDP = C + I + G + ( x - M )

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!

Q:

Consider the formula: GDP = C + I + G + (X - M) A country has a 5 billion increase in government spending, with a 5 billion increase in personal consumption. Assuming nothing else has changed, what...

Q:

Flag this Question Question 11pts Which of he following would represent an equilibrium of supply and demand> Group of answer choices P = $5, Qs = 6, Qd = 6 P = $3, Qs = 8. Qd = 12. P - $1, Qs = 7, Qd...

Q:

1. In theory, what conditions must exist for a company to build a new factory? That is, what hurdles must a firm overcome in order to build a factory? 2. What are the five areas, or categories, of...

Q:

Please helpFrom the text- please make one annotation per page Workbook please complete using the text 4 Files 4:01 PM Fri May '13 Insert Draw Layout Review View Unit 4Economic Indicators Name: HR:...

Q:

:Answer all questions. After nearly five years with Coca-Cola, engineer Xiaorong "Shannon" You was getting downsized. Prosecutors allege that two days before her final shift in Atlanta, You gave...

Q:

1. Categories of expenditures Kenji and Lucia Murphy live in Swarthmore, PA. Lucia's father, Paolo, lives in Sweden. For each of the following transactions, identify whether it is included in the...

Q:

1. Categories of expenditures Kenji and Lucia Murphy live in Swarthmore, PA. Lucia's father, Paolo, lives in Sweden. For each of the following transactions, identify whether it is included in the...

Q:

Assignment 01 (semester 2) Assignment 01 Unique number 730716 Closing date 30 August 2021 Content Learning units 1 and 2 of the Study Guide and the relevant chapters of the prescribed book Questions...

Q:

What is the benefit to maintaining price stability within a country? Select one: a. Consumers and businesses can safely pursue long-term consumption and production plans. b. Expansion in national...

Q:

Answer,the following questions precisely. Assignment .: 1 Q search Question 3 Automatic Joom 6 marks (a) Draw a sketch of the functions y = er and y = x* to see that there is a point of intersection...

Q:

KTS is trying to estimate the first-year operating cash flow. The financial staff has given Dante the following information: Incremental revenue = $9 Depreciation = $3 Interest Expense = $1 Marginal...

Q:

A long wire carrying 100 A is perpendicular to the magnetic field lines of a uniform magnetic field of magnitude 5.0mT. At what distance from the wire is the net magnetic field equal to zero?

Q:

Your friend John asks you for advice concerning life insurance. John, an auto mechanic, is 36 years old and currently earns $70,000 per year.John is married and has three children, Billy, age 2....

Q:

In the History of Economics, we have traveled a long way:From the isolated economic societies to today's world of globalized production and near financial collapse.We want to know what the future...