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Answer to Question #60994 in Macroeconomics for Maria

Question #60994
You are given the data below for 2008 for the imaginary country of Amagre, whose currency is the G.

Consumption 350 billion G
Transfer payments 100 billion G
Investment 100 billion G
Government purchases 200 billion G
Exports 50 billion G
Imports 150 billion G
Bond purchases 200 billion G
Earnings on foreign investments 75 billion G
Foreign earnings on Amagre investment 25 billion G

Compute net foreign investment.
Compute net exports.
Compute GDP.
Compute GNP.

In addition to responding with a quantitative answer, briefly, describe how you arrived at your answers.
Expert's answer
Net foreign investment is equal to net exports. The value of exports minus imports is net exports.
Net exports = Exports – Imports = 50 – 150 = -100 billion G.
As a result net foreign investment equals 100 billion G.
Gross domestic product is the value of finished goods and services manufactured within a country in a defined period of time. GDP equals to the sum of consumption, government expenditures, investments and net exports.
GDP = C + I + G + NX
GDP = 350 + 100 + 200 – 100 = 550 billion G.
Gross national product equals GDP plus income earnings from foreigners minus income payments to other countries.
GNP = C + I + G + NX + NY
GNP = 550 + (25 – 75) = 500 billion G.

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Assignment Expert
27.07.16, 15:12

Dear Maria,

Questions in this section are answered for free. We can't fulfill them all and there
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26.07.16, 20:34

Please, I did not see my answers!

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