Category Expenditure (in billions of 2020 Q2 NZ Dollars) Household final consumption 40.3 Government final consumption 15.7 Budget balance -3.8 Total investment 14.4 Change in inventories -3.6 Exports of goods and services 18.6 Imports of goods and services 16.5 Calculate Africa's planned investment in the second quarter of 2020.
Category Expenditure (in billions of 2020 Q2 NZ Dollars) Household final consumption 40.3 Government final consumption 15.7 Budget balance -3.8 Total investment 14.4 Change in inventories -3.6 Exports of goods and services 18.6 Imports of goods and services 16.5 Calculate Africa's planned investment in the second quarter of 2020.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Category |
Expenditure (in billions of 2020 Q2 NZ Dollars) |
Household final consumption |
40.3 |
Government final consumption |
15.7 |
Budget balance |
-3.8 |
Total investment |
14.4 |
Change in inventories |
-3.6 |
Exports of goods and services |
18.6 |
Imports of goods and services |
16.5 |
Calculate Africa's planned investment in the second quarter of 2020.
Expert Solution
Step 1
Total investment has two components:
- Depreciation, that is the expenditure on capital replacement, this is also called planned investment
- Net investment, which is the part of total investment spent on addition of new stock of capital, this is unplanned investment as it is taken according to the requirement of the markets and economy
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