In Country A, these were last year's values for components of aggregate demand:
Consumption: $5.5 billion
Investment: $2.6 billion
Government spending: $1.1 billion
Exports: $1.8 billion
Imports: $0.8 billion
This year, Country A's citizens increased their consumption of foreign goods by
$0.4 billion. (Their level of consumption of other goods has not changed). Moreover, as compared to last year, private investors spent an
additional
$0.7 billion on imported building materials used to construct new local manufacturing facilities. Exports remained unchanged, and there
was a rightward shift of aggregate demand by
$0.7 billion at any price level.
Calculate Country A's government spending this year. Throughout your calculations, round to one decimal place if necessary. Enter your
answer in billions in the box below.