What is government spending in the economy


Question 1: Could you explain the similarities and differences between GDP and national income?

Question 2: Would you define Gross Domestic Product and Gross National Product. Then answer the following question: Why would a Honda manufactured in Ohio be included in U.S. GDP, while a General Motors vehicle manufactured in Mexico would not?

Question 3: Finally, please identify and describe the four components of GDP and answer the following question, please demonstrate how you arrived at your solution. If GDP is $100 billion, consumption is $60 billion, investment is $30 billion, and net exports are -$5 billion, what is government spending in this economy?

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Microeconomics: What is government spending in the economy
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