Description
Please see attachment!
Unformatted Attachment Preview
Purchase answer to see full attachment

Explanation & Answer

Here you go. In case of any further inputs please let me know!It was good working with you! 👋 Thanks for using Studypool. Take care and good luck!All the best.
Running Head: CONSUMPTION ASSIGNMENT
Consumption Assignment
Name
Course
Tutor
Date
1
CONSUMPTION ASSIGNMENT
2
Consumption Assignment
The Gross domestic product of a country accounts for the market of the monetary value
of all the services and goods produced at a specific period. It is a broad measure of all the
production activities within a country's borders as a benchmark for determining its economic
health (Rahim & Yusoff, 2019). The value of GDP increases when the total goods and services
produced domestically exceeds the value of goods and services bought from foreign markets.
Missing Estimations
The calculation of GDP for 1998 follows the formula,
GDP= C+I+G+(X-M) where,
C= individual (private) consumption
I= investment
G= expenditure
X= export and M, import
Therefore, the GDP for 1998 will be:
5,877.2 +1,736.7+ 1,611.6 + (953.0-1,115.7) =
9225.5+ (-162.7)
=$9062.8
Personal Consumption expenditure for 2028 is given as
C= GDP-(I+G+(X-M)
=30,493.1-(5,822.0+4,741.3+ (3,891.0-4711.5)
=30,493.1-9742.8
=$20,750.3
Gross private domestic investment (I) for 2008 will be
CONSUMPTION ASSIGNMENT
3
I=GDP-(C+G+(X-M)
=14,712.8-(9,976.3+2982+ (1837-2560.1)
=14,712.8-12235.3
=$2,477.6
2018 Export was
GDP=C+I+G+(X-M)
X=GDP-(C+I+G-M)
=20,494.1-(13,948.5+ 3,650.1+3,520.8-3,156.7)
=$2507.5
Consumption Function
Consumption function, also known as the Keynesian consumption, is a model that depicts
the link between the gross national income and the total consumption. The model highlights
consumption patterns and various aspects that determine consumer spending (Aitk...
