If a government spends $35 billion on unemployment benefits, $100 billion on national defence, $20 billion on civil services, and $60 billion on public infrastructure, then its total consumption expenditure is:[Hint: see question 1 of in-class quiz - week 7]Group of answer choices$235 billion.$250 billion.$215 billion.$180 billion.

This is a component of GDP that is determined by this entity’s spending on public works, national defense, public education and other similar expenditures.Select one:a. Investmentsb. Net Exportsc. Governmentd. Consumption

Suppose that the level of GDP increased by $400 billion in a private closed economy where the marginal propensity to consume is 0.60. Aggregate expenditures must have increased byGroup of answer choices$160 billion.$400 billion.$80 billion.$240 billion.

If the economy is in equilibrium and the government increases spending by $100 billion, equilibrium aggregate expenditures increase to $________ billion.Group of answer choices1,7001,8002,0002,400

If GDP (measured in billions of current dollars) is $5,465, consumption is $3,657, investment is $741, and net exports are –$1,910, then government purchases are:

mponents of SpendingValue(billions of dollars)Consumption$140Business fixed and residential investment$27Inventory stock at the end of prior year$10Inventory stock at the end of current year$5Depreciation$12Government outlays$80Government purchases$65Exports$21Imports$17Labor income$126Capital income$70Net income of foreigners$5Taxes, subsidies, and transfers$28Inventory investment = $−5Net exports = $4Gross domestic product = $241Statistical discrepancy = $12National saving =