Question

Category	Billions of dollars
Consumption	400
Investment	150
Government spending	80
Exports	210
Imports	60
Foreign income payments to domestic factors	20
Domestic income payments to foreign factors	10
Net unilateral transfers	5

1. Using the hypothetical U.S. national income and product accounts data from the above table, answer the following: (Please show all calculations and formulas used)
   1. Calculate GNE.
   2. Calculate the trade balance.
   3. Calculate GDP.
   4. Calculate net factor income from abroad.
   5. Calculate GNI.
   6. Calculate the value of current account.
   7. Calculate GNDI.
   8. Calculate national savings for U.S.

Answer 1

a) GNE = C + I + G = 400 + 150 + 80 = $630 billions

b) Trade balance = Export - Import = 210 - 60 = $150 billions

c) GDP = C + I + G + (X - M) = 400 + 150 + 80 + (210 - 60) = $780 billion

d) Net factor income from abroad = Foreign income payments to domestic factors - Domestic income payments to foreign factors

                                                     = 20 - 10 = $10 billion

e) GNI = GDP + Net factor income from abroad = 780 + 20 - 10 = $790 billion

f) Value of current account = (X - M) + Net factor income from abroad + Net unilateral transfers

                                            = (210 - 60) + 10 + 5 = $165 billion

g) GNDI = GNI + Net unilateral transfers = 790 + 5 = $795 billions

h) National savings for U.S = I + current account balance = 150 + 165 = $315 billion