Consider the following data for a particular economy: GDPmp = 950 Private consumption = 750 Gross investment = 100 Net investment = 80 Exports = 250 Imports = 300 Net Indirect taxes = 50 Net external income = 100 Balance of transfers with the Rest of the World = 50 Private savings = 300 Calculate: a) NNPbp (Net National Product) and Current balance. Interpret the result obtained. b) Public savings and Totaltaxes net of Gov. transfers. Interpret the result obtained
Consider the following data for a particular economy: GDPmp = 950 Private consumption = 750 Gross investment = 100 Net investment = 80 Exports = 250 Imports = 300 Net Indirect taxes = 50 Net external income = 100 Balance of transfers with the Rest of the World = 50 Private savings = 300 Calculate: a) NNPbp (Net National Product) and Current balance. Interpret the result obtained. b) Public savings and Totaltaxes net of Gov. transfers. Interpret the result obtained
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Consider the following data for a particular economy:
GDPmp = 950
Private consumption = 750
Gross investment = 100
Net investment = 80
Exports = 250
Imports = 300
Net Indirect taxes = 50
Net external income = 100
Balance of transfers with the Rest of the World = 50
Private savings = 300
Calculate:
a) NNPbp (Net National Product) and Current balance. Interpret the result obtained.
b)
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