Q1) Given the following national income accounting date, use the expenditure approach to compute: 1. Gross...

Q1) Given the following national income accounting date, use the expenditure approach to compute:

1. Gross Private Investment 2.GDP 3.NPP (net national product) 4.Net exports

Assume any needed valuaes that are not given to be zero
Compensation of employees 239.2
Us exports of goods and services 36.4
Capital compensation allowance 13.8
Personal income taxes 56.5
personal consumption expenditures 204.1
GOvernment purchases of goods and services 94.4
Indirect business taxes 21.2
Net private investment 59.1
Transfer payments 16.9
US imports of goods and services 48.5
Net factor payments to the rest of the worlds 0.0

Q2) Assume we have a closed economy (no foreign trade) with no government sector. if the planned level of saving is more than the planned level of investment, does the level of unplanned inventories held by business increase or decrease??? Explain.

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Expert Solution

Rahul Sunny answered 1 year ago

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