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MACROECONOMIC 1.The table below contains data for country A for the year 2010. use these data to answer the fo?

  • household purchases of durable goods 1293 household purchases of nondurable goods 1717 household purchases of services 301 household purchases of new housing 704 household of capital equipment 310 Inventory changes 374 purchases of new structures 611 Depreciation 117 salaries of government workers 1422 Government expenditures on public works 553 Transfer payments 777 Foreign purchases of domestically produced goods 88 Domestic purchases of foreign goods 120 (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 was country A's government purchases in 2010? (e) What was country A's Net exports in 2010?

  • Answer:

    1 -7... all purchases go in expenditure approach of GDP 8....depreciation goes in income approach of GDP 9 to 11...goes in govt. expenditure (G) in expenditure approach 12... goes in net exports in expenditure approach 13....goes -ve in in net exports in expenditure approach 1 to 3... goes in consumption 4 to 7....goes in investment 10 and11...goes in govt. purchases 12 -13 ( ie 12 less 13) ... goes as net exports.

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