Define business inventories and explain how they are counted in GDP.
Calculate government spending given the following information:
- GDP = $123 million
- Consumer spending = $72 million
- Financial investment spending = $12 million
- Investment spending = $25 million
- Net exports = $5 million
Calculate consumer spending given the following information:
- GDP = $96 million
- Government spending = $19 million
- Financial investment spending = $12 million
- Investment spending = $18 million
- Net exports = $2 million