Question

The table below contains data for country A for the year 2010.

Household purchases of nondurable goods $1,717
Household purchases of services $301
Household purchases of new housing $704
Purchases of capital equipment $310
Inventory changes $374
Purchases of new structures $611
Depreciation $117
Salaries of government workers $1,422
Government expenditures on public works $553
Transfer payments $777
Foreign purchases of domestically produced goods $88
Domestic purchases of foreign goods $120

Required:
a. What was country A's GDP in 2010?
b. What was country A's consumption in 2010?
c. What was country A's investment in 2010?
d. What were country A's government purchases in 2010?
e. What were country A's exports in 2010?
f. What were country A's imports in 2010?
g. What were country A's net exports in 2010?

Answer 1

Solution :

a). The GDP of country A in 2010 is : 7253

GDP = consumption + investment + government purchase + net exports

        = (1293+1717+301+704) + (310+374+611) + (1422+553) + (88-120)

        = 7253

b). The consumption of the country A in 2010 is :

     = $ 1293 + $ 1717 + $ 301

     = $ 3311

c). The investment of country A is :

      = $ 704 + $ 310 + $ 374 + $ 611

      = $ 1999

d). The government purchases of the country A in the year 2010 is :

     = $ 1422 + $ 553

     = $ 1975

e). The export of the country A in year 2010 is $ 88.

f).  The import of the country A in year 2010 is $ 120.

g). The net export of country A is given by :

     Net export = export - import

                       = $88 - $ 120

                       = - $ 32