Consider the following economy.

Consider the following accounting statement for a small economy: Compensation of employees $10,000 Consumption of fixed...

Consider the following accounting statement for a small economy: Compensation of employees $10,000 Consumption of fixed capital $100 Corporate income taxes $200 Dividends $350 Government purchases $1,000 Gross private domestic investment $1,000 Indirect business taxes $400 Interest $600 Net exports -$1,000 Net foreign factor income earned in the United States $50 Personal consumption expenditures $12,000 Personal taxes $1,050 Proprietors' income $800 Rents $200 Social Security contributions $500 Transfer payments $200 Undistributed corporate profits $300 4. In this economy, GDP is...

Use the following information about the open economy of Regalia to answer the question below. There...

Use the following information about the open economy of Regalia to answer the question below. There are no government transfers. (Hint: capital inflow = the value of imports (IM) minus the value of exports (X).) GDP = $1,000 million G = $100 million C = $850 million X = $100 million T = $50 million IM = $125 million What is the level of investment spending and private savings, and what are the budget balance and capital inflow? A) Investment...

The following data describes the economy of Antarctica in 2050: Item (billions of Antarctica dollars) Imports...

The following data describes the economy of Antarctica in 2050: Item (billions of Antarctica dollars) Imports of goods and services 150 Exports of goods and services 50 Foreign investment in Antarctica 125 Antarctica's investment abroad 55 Calculate the current account balance ____________ and capital/financial account balance __________ Is the country experiencing a balance of payments crisis? Explain.

The data in the first two columns below are for a private closed economy. Use this...

The data in the first two columns below are for a private closed economy. Use this table to answer the following questions. Real GDP = DI (billions) Aggregate expenditures (billions) Exports (billions) Imports (billions) Net exports (billions) Aggregate expenditures (billions) $ 80 $100 $15 $5 $_____ $_____ 120 130 15 5 _____ _____ 160 160 15 5 _____ _____ 200 190 15 5 _____ _____ 240 220 15 5 _____ _____ 280 250 15 5 _____ _____ 320 280 15...

Consider the following table which shows the balance-of-payments for a country. Figures are in billions. Goods...

Consider the following table which shows the balance-of-payments for a country. Figures are in billions. Goods Exports                                    +80 Goods Imports                                    -60 Service Exports                                  +30 Service Imports                                  -20 Net Investment Income                      -10 Net Transfers                                      +20 Balance on Capital Account               0 Foreign Purchases of Domestic Assets          +40 Domestic Purchases of Foreign Assets          -80 Calculate the following: a. Balance on goods. b. Balance on goods and services. c. Balance on current account. d. Balance on capital and financial account. e. Suppose that this...

Consider the following table which shows the balance-of-payments for a country. Figures are in billions. Goods...

Consider the following table which shows the balance-of-payments for a country. Figures are in billions. Goods Exports                                                +80 Goods Imports                                    -60 Service Exports                                  +30 Service Imports                                   -20 Net Investment Income                      -10 Net Transfers                                      +20 Balance on Capital Account              0 Foreign Purchases of Domestic Assets           +40 Domestic Purchases of Foreign Assets           -80 Calculate the following: a. Balance on goods. b. Balance on goods and services. c. Balance on current account. d. Balance on capital and financial account. e. Suppose that this...

Consider the following table which shows the balance-of-payments for a country. Figures are in billions. Goods...

Consider the following table which shows the balance-of-payments for a country. Figures are in billions. Goods Exports                                    +80 Goods Imports                                    -60 Service Exports                                   +30 Service Imports                                   -20 Net Investment Income                       -10 Net Transfers                                       +20 Balance on Capital Account               0 Foreign Purchases of Domestic Assets          +40 Domestic Purchases of Foreign Assets          -80 Calculate the following: a. Balance on goods. b. Balance on goods and services. c. Balance on current account. d. Balance on capital and financial account. e. Suppose that this...

Use the information in the following table to answer questions 1 through 4: Exports of goods...

Use the information in the following table to answer questions 1 through 4: Exports of goods & services: $1000 Imports of goods & services: $1200 Net change in assets owned abroad: $100 Net change in foreign owned assets at home: $360 Unilateral transfers received: $130 Unilateral transfers paid: $200 Investment income paid to foreigners: $380 Investment income received from foreigners: $400 Balance on the capital account: $0 Statistical Discrepancies: $0 1. The balance on the current account is _________. A)...

Consider an open economy. Let e denote the real exchange rate and Y denote income. Suppose...

Consider an open economy. Let e denote the real exchange rate and Y denote income. Suppose e = 1.5. Let consumption be given by C = 500 + 0.8Yd, exports be given by EX = 200 + 0.9e, and imports be given by IM = 150 + 0.2Yd - 0.5e. Finally, let domestic investment, government purchases and taxes be, respectively, I = 300, G = 200 and T = 120. 1. What is the import balance? 2. What is the...

Suppose you are given the following data on incomes and expenditures for the economy of Westland,...

Suppose you are given the following data on incomes and expenditures for the economy of Westland, in current prices for factors incomes and outputs. Consumption expenditures 2500 Employment income 2800 Government expenditure 800 Net indirect taxes 150 Exports 1200 Business income 700 Capital consumption allowance 200 Investment expenditure 600 Imports 1100 Investment income 150 (a) What is the value of the nominal GDP measured by expenditures? (b) What is the net domestic income? (c) What is the value of nominal...