8. In this question you will study the official macroeconomic statistics reported in the United States. In the United States, these can be found at http://www.bea.gov and by accessing the National Income and Product Account (NIPA) tables 1.1.5 and 4.1. a. Using annual data, compute GDP, GNE, and GNDI in the most recent year. b. Was your country's GDP higher or lower than its GNE in the past year? Interpret this finding. c. Was your country's GNI higher or lower than its GDP? Interpret this finding. d. Was your country a net giver or receiver of unilateral transfers? 6. In 2016 the country of Ikonomia has a current account deficit of $1 billion and a nonreserve financial account surplus of $700 million. Ikonomia's capital account is in a $150 million surplus. In addition, Ikonomian factors located in foreign countries earn $700 million. Ikonomia has a trade deficit of $600 million. Assume Ikonomia neither gives nor receives unilateral transfers. Ikonomia's GDP is $9.4 billion. a. What happened to Ikonomia's net foreign assets during 2016? Did it acquire or lose foreign assets during the year? b. Compute the official settlements balance (OSB). Based on this number, what happened to the central bank's (foreign) reserves? c. How much income did foreign factors of production earn in Ikonomia during 2016? d. Compute net factor income from abroad (NFIA). e. Using the identity BOP=CA+FA+KA, show that BOP = 0. f. Compute Ikonomia's gross national expenditure (GNE), gross national income (GNI), and gross national disposable income (GNDI).
8. In this question you will study the official macroeconomic statistics reported in the United States. In the United States, these can be found at http://www.bea.gov and by accessing the National Income and Product Account (NIPA) tables 1.1.5 and 4.1. a. Using annual data, compute GDP, GNE, and GNDI in the most recent year. b. Was your country's GDP higher or lower than its GNE in the past year? Interpret this finding. c. Was your country's GNI higher or lower than its GDP? Interpret this finding. d. Was your country a net giver or receiver of unilateral transfers? 6. In 2016 the country of Ikonomia has a current account deficit of $1 billion and a nonreserve financial account surplus of $700 million. Ikonomia's capital account is in a $150 million surplus. In addition, Ikonomian factors located in foreign countries earn $700 million. Ikonomia has a trade deficit of $600 million. Assume Ikonomia neither gives nor receives unilateral transfers. Ikonomia's GDP is $9.4 billion. a. What happened to Ikonomia's net foreign assets during 2016? Did it acquire or lose foreign assets during the year? b. Compute the official settlements balance (OSB). Based on this number, what happened to the central bank's (foreign) reserves? c. How much income did foreign factors of production earn in Ikonomia during 2016? d. Compute net factor income from abroad (NFIA). e. Using the identity BOP=CA+FA+KA, show that BOP = 0. f. Compute Ikonomia's gross national expenditure (GNE), gross national income (GNI), and gross national disposable income (GNDI).
Chapter1: Making Economics Decisions
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Please help me with 6 and 8. Thank you
Transcribed Image Text:8. In this question you will study the official macroeconomic statistics reported in the United
States. In the United States, these can be found at http://www.bea.gov and by accessing the
National Income and Product Account (NIPA) tables 1.1.5 and 4.1.
a. Using annual data, compute GDP, GNE, and GNDI in the most recent year.
b. Was your country's GDP higher or lower than its GNE in the past year? Interpret this finding.
c. Was your country's GNI higher or lower than its GDP? Interpret this finding.
d. Was your country a net giver or receiver of unilateral transfers?
Transcribed Image Text:6. In 2016 the country of Ikonomia has a current account deficit of $1 billion and a
nonreserve financial account surplus of $700 million. Ikonomia's capital account is in a
$150 million surplus. In addition, Ikonomian factors located in foreign countries earn
$700 million. Ikonomia has a trade deficit of $600 million. Assume Ikonomia neither
gives nor receives unilateral transfers. Ikonomia's GDP is $9.4 billion.
a. What happened to Ikonomia's net foreign assets during 2016? Did it acquire or lose
foreign assets during the year?
b. Compute the official settlements balance (OSB). Based on this number, what happened to
the central bank's (foreign) reserves?
c. How much income did foreign factors of production earn in Ikonomia during 2016?
d. Compute net factor income from abroad (NFIA).
e. Using the identity BOP=CA+FA+KA, show that BOP = 0.
f. Compute Ikonomia's gross national expenditure (GNE), gross national income (GNI),
and gross national disposable income (GNDI).
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