In: Economics
Durable goods 400
Non-resident investment 300
Federal purchase of goods 300
Exports 500
State and local purchases of goods 250
Residential investment 5
Imports 150
Change in business inventories -25
Nondurable goods 600
Depreciation 50
Net factor income from abroad 30
Determine:
i) Personal consumption expenditures
ii) The value for gross private domestic investment
iii) The value of Net Exports
iv) The value of government spending in
v) The value of gross domestic product (GDP)
vi) The value of GNP
vii) The value of NNP
2. In an economy, Y (national income) + C (Consumption) + I (investment). If consumption + $50m + 0.75Y, planned investment = $180m and national income = $800m, realised investment will be:
$50m
$100m
$200m
$300m
(i) | |
Durable goods | 400 |
Nondurable Goods | 600 |
Personal Consumption Expenditure | 1000 |
(ii) | |
Non-residential Investment | 300 |
Residential Investment | 5 |
Change in Business Inventories | -25 |
Gross Private Domestic Investment | 280 |
(iii) | |
Export | 500 |
Import | 150 |
Net Export=Export-Import | 350 |
(iv) | |
Federal Purchase of good | 300 |
State and Local Purchase of good | 250 |
Government Spending | 550 |
(v) | |
C | 1000 |
I | 280 |
G | 550 |
NX | 350 |
GDP=C+I+G+NX | 2180 |
(vi) | |
GDP | 2180 |
Net Factor Income from abroad | 30 |
GNP=GDP+NFIA | 2210 |
(vii) | |
GNP | 2210 |
Depreciation | 50 |
NNP=GNP-Depreciation | 2160 |
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2.
The economy is given as
For Y=800,
Then planned investment $180 and inventory investment -$30 and realised investment $150.