The following transactions took place in Ecoland in 2019: Trillions of 2015 dollars Government purchases 125 Тахes 140 Firms' profits 125 Investment 175 Consumption expenditure 300 Wages paid to labor 450 Exports 200 Government transfer payments 60 Imports 175 (a) Calculate Ecoland's real GDP, i.e., GDP measured in 2015 dollars. (b) How much do households save in Ecoland? Is it enough to finance domestic investment? (c) Does the government have a balanced budget? If not, what is the surplus or deficit?
The following transactions took place in Ecoland in 2019: Trillions of 2015 dollars Government purchases 125 Тахes 140 Firms' profits 125 Investment 175 Consumption expenditure 300 Wages paid to labor 450 Exports 200 Government transfer payments 60 Imports 175 (a) Calculate Ecoland's real GDP, i.e., GDP measured in 2015 dollars. (b) How much do households save in Ecoland? Is it enough to finance domestic investment? (c) Does the government have a balanced budget? If not, what is the surplus or deficit?
Chapter1: Making Economics Decisions
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Transcribed Image Text:The following transactions took place in Ecoland in 2019:
Trillions of 2015
dollars
Government purchases
125
Taxes
140
Firms' profits
125
Investment
175
Consumption expenditure
300
Wages paid to labor
450
Exports
200
Government transfer payments
60
Imports
175
(a) Calculate Ecoland's real GDP, i.e., GDP measured in 2015 dollars.
(b) How much do households save in Ecoland? Is it enough to finance domestic investment?
(c) Does the government have a balanced budget? If not, what is the surplus or deficit?
(d) If Ecoland's nominal GDP in 2019 is $900 trillion, how much inflation has Ecoland experienced
since 2015?
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