- Y = C + I + (X - M)+ G
C= Consumer Expenditure
G= Government expenditure
Thus, Y= $1000+$200+$300+$200
- If we increase our domestic energy production, it will help us to import less energy from foreign countries, thus decreasing the value of imports. This will increase the excess of exports over imports and thus increase the GDP of the country.
- Rate of inflation= (Current CPI – Previous CPI)/Previous CPI * 100
Rate of inflation= (111-106)/106*100 = 4.717%
- Rate of inflation= (234-217)/217*100 = 7.834%