In the economy of Talikastan in 2015, exports were $500, GDP was $6400, government purchases were $1700, imports were $400, and investment was $1800. What was Talikastan’s consumption in 2015?

$2,800

Explanation:

Given that

GDP= $6,400

Investment = $1,800

Government spending = 1,700

Export = $500

Import = $400

The computation of Talikastan’s consumption is given below:-

GDP = Consumption + Investment + Government Spending + Exports - Imports

$6,400 = Consumption + $1,800 + $1,700 + $500 - $400

$6,400 = Consumption + $4,000 - $400

= $2,800

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