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Item Amount 300 Stock of Capital at end of year (K) Change in Private Inventories (CI) Compensation of Employees-Wages (W) 50 60 Consumption of Fixed Capital-Depreciation (DEPR) Government Consumption and Gross Investment (G) Gross Private Domestic Fixed Investment (FI) Interest (INT) Net Exports (XN) Profits (PROF) Proprietors Income (PRIN) Purchases of Stocks and Bonds (SB) Rents (RENT) Taxes on Production and Income (TAX) 15 13 -2 13 4 1. (a) Compute Gross Private Domestic Investment (). Show your work. (b) Compute Gross Domestic Product (GDP) via the expenditures approach. Show your work. 2. (a) Compute National Income, Show your work (b) Compute Gross Domestic Income (GDD. Show your work. 3. Statistical Discrepancy (SD) is zero. What does that imply regarding the relationship between GDP and GDI? Explain carefully and thoroughly
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