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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.
1
2016-07-27T08:13:02-0400
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 = GDP + NY
GNP = 550 + (25 – 75) = 500 billion G.

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Assignment Expert
27.07.16, 16:12

Dear Maria,

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Maria
26.07.16, 21:34