DQuestion 7 2 pts Suppose we have the country of Lucasopolis and all its economi

Question

DQuestion 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 stoo,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

7).

Consider t6he given problem here “Lucasopolis‘s” people spend “$100 million” on food, cars and housing in 2018. Now, people in “Lucasopolis” also spend “$50 million” to hear the speeches, => the total consumption is “$150 million”.

Now, the GDP is given by as follows.

=> $100 + $300 + $100 - $100 + $50 = $450 million.

So, here consumption is “150/450*100 = 33.33% of GDP.

8).

Michelle-stanl’s government spends “$100 million” on uniform produced in “Lucasopolis”, => it’s a export. Similarly, “Lucasopolis” govt. spend “$100 million” on concrete produced, => its like import, => the net export is “$100 million - $100 million = $0”.

So, here the correct answer is “B”, => “0%”.

Related Questions

Navigate

• Browse (All)
• Browse D
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.