Question

Co Chapter 6 - The Macroeconomic X C Get Homework Help With Chegy X + sments/5f822a6782f03a454a709600 Chapter 6 - The Macroeconomic Perspective OPEN I am finished You answered 2 out of 3 parts. Some of your answers will be scored later. The table below lists information about the country of Microtania's economy in 2009. The country is closed, meaning it made no income payments to the rest of the world and it received no income payments from the rest of the world, either. Government expenditures $15000 Exports $1400 Depreciation $3800 Imports $1500 Consumption $37500 Investment $2000 Using this information, calculate Microtania's trade balance: $100 Calculate GDP: $58400 Calculate net national product: Cookies help us deliver our services. By using our services, you agree to our use of cookies. OK Learn more

Answer 1

GDP(Y) = C + I + G + NX

where, C is consumption

           I is investment

            G is government expenditure

             NX is net export ( export - import) also known as trade balance

Trade balance = export - import

Trade balance = 1400-1500

                        = -100

Y = 37500+2000+15000+(1400-1500)

Y(GDP) = 54400

NNP = GDP - Depreciation + NFIA ( NFIA is the net factor income from the abroad)

NNP =54400 - 3800 ( note NFIA is zero because it has given in the question there is no factor payment made to rest of the world and no factor payment received from the rest of the world )

NNP = 50600