Based on the following statistics, how much is consumption?
$$\begin{array} { | l | c | }
\hline \text { Total spending } & \$ 11.62 \text { trillion } \
\hline \text { Investment } & \$ 2.56 \text { trillion } \
\hline \text { Government spending } & \$ 2.95 \text { trillion } \
\hline \text { Exports } & \$ 1.80 \text { trillion } \
\hline \text { Imports } & \$ 2.18 \text { trillion } \
\hline
\end{array}$$
A)$11.62 trillion
B)$5.13 trillion
C)$6.49 trillion
D)-$0.38 trillion

Question

Based on the following statistics, how much is consumption?
$$\begin{array} { | l | c | } 
\hline \text { Total spending } & \$ 11.62 \text { trillion } \
\hline \text { Investment } & \$ 2.56 \text { trillion } \
\hline \text { Government spending } & \$ 2.95 \text { trillion } \
\hline \text { Exports } & \$ 1.80 \text { trillion } \
\hline \text { Imports } & \$ 2.18 \text { trillion } \
\hline
\end{array}$$
A)$11.62 trillion
B)$5.13 trillion
C)$6.49 trillion
D)-$0.38 trillion

Quizplus · Accepted Answer

To calculate consumption, we use the formula for GDP: $GDP = C + I + G + (X - M)$, where $C$ is consumption, $I$ is investment, $G$ is government spending, $X$ is exports, and $M$ is imports. Given that total spending (GDP) is $11.62 trillion, investment is $2.56 trillion, government spending is $2.95 trillion, exports are $1.80 trillion, and imports are $2.18 trillion, we can rearrange the formula to solve for $C$: $C = GDP - I - G - (X - M)$. Plugging in the numbers: $C = 11.62 - 2.56 - 2.95 + (1.80 - 2.18)$, which simplifies to $C = 11.62 - 2.56 - 2.95 - 0.38 = 5.73$. However, there seems to be a mistake in my calculation as none of the options match this result. Correctly calculating based on the provided options and the correct approach to subtract and add the given values, the correct calculation should align with the options given, indicating a mistake in my initial calculation. Correctly, $C = 11.62 - 2.56 - 2.95 + (2.18 - 1.80)$, which actually simplifies to $C = 11.62 - 2.56 - 2.95 + 0.38$, indicating a need to correctly apply the formula and values provided. The correct calculation should reflect the total consumption based on subtracting investment, government spending, and adjusting for the net exports (exports minus imports), which in this case was incorrectly adjusted in my explanation. The correct answer, based on the formula and the values provided, should reflect the total consumption as part of the GDP equation, taking into account the correct subtraction and addition of imports and exports.

Based on the Following Statistics, How Much Is Consumption A)$1162 Trillion B)$5

Based on the Following Statistics, How Much Is Consumption A)$1162 Trillion
B)$5