1. Assume the following accounts and amounts were reported by a nation last year. Government Purchases of...

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Finance

1. Assume the following accounts andamounts were
    reported by anation last year. Government Purchases of Goods and Services wereUS$5.5
    Billion; PersonalConsumption Expenditure were US$40.5 Billion; Gross PrivateDomestic
    Investment amountedto US$20 Billion; Capital Consumption Allowances were US$4Billion;
    Personal Savingswere estimated at US$2 Billion; Imports of Goods and Servicesamounted
    US$6.5 Billion; andexports of Goods and Services were US$5 Billion.
Determine the nation’s Gross Domestic Product (GDP).
How would your answer change if the Dollar amounts of importsand exports were reversed?
b.Describe the MI definition of the money supply and indicatethe relative significance of the MI components.

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4.1 Ratings (775 Votes)

i Nations Gross Domestic Product GDP Gross Domestic Product Government Expenditure Consumption Domestic Investment Net Exports GDP 55 405 4 20 5 65 Billion Dollars GDP 685 Billion Dollars See Answer

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1. Assume the following accounts andamounts were reported by anation last year. Government Purchases of Goods and Services wereUS$5.5 Billion; PersonalConsumption Expenditure were US$40.5 Billion; Gross PrivateDomestic Investment amountedto US$20 Billion; Capital Consumption Allowances were US$4Billion; Personal Savingswere estimated at US$2 Billion; Imports of Goods and Servicesamounted US$6.5 Billion; andexports of Goods and Services were US$5 Billion.Determine the nation’s Gross Domestic Product (GDP).How would your answer change if the Dollar amounts of importsand exports were reversed?b.Describe the MI definition of the money supply and indicatethe relative significance of the MI components.