Suppose the following table shows some national accounting data for a given year for some particular country.
Table 1 national accounting data
Amount (billions of dollars)
Quantity demanded
Consumption of fixed capital
280
Gross private domestic investment
900
Government consumption expenditures
520
Government investment expenditures
200
Imports
580
Exports
680
Household consumption expenditures
3105
Net property income paid overseas
20
1.What is the country's current account balance? What is the country's gross national saving?
2.Explain how net exports affect the economy. Why do national income accountants use net exports to compute GDP, rather than simply adding exports to the other spending components of GDP?
Suppose the following table shows some national accounting data for a given year for some particular country.
Table 1 national accounting data
|
Amount (billions of dollars) |
Quantity demanded |
|
Consumption of fixed capital |
280 |
|
Gross private domestic investment |
900 |
|
Government consumption expenditures |
520 |
|
Government investment expenditures |
200 |
|
Imports |
580 |
|
Exports |
680 |
|
Household consumption expenditures |
3105 |
|
Net property income paid overseas |
20 |
1.What is the country's current account balance? What is the country's gross national saving?
2.Explain how net exports affect the economy. Why do national income accountants use net exports to compute GDP, rather than simply adding exports to the other spending components of GDP?
Related textbook solutions
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5. The income approach The following table shows macroeconomic data for a hypothetical country. All figures are in billions of dollars.
National income can also be calculated based on disposable income. Use the following table to derive personal income and national income (in billions of dollars). Specify what needs to be added to disposable income to arrive at personal income, and explain how personal income should be adjusted to find national income.
National income is the total amount earned by the citizens of a country, while gross domestic product is the total value of goods and services produced within a country. To determine the gross domestic product, you have to make some adjustments to national income. Use the following table to derive gross domestic product and, as part of the process, net domestic product (NDP) (in billions of dollars). Again, specify what should be added to and subtracted from national income to arrive at the net domestic product, and what should be added to the net domestic product to arrive at the gross domestic product.
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