Transfer Payments $54 Interest Income $150 Depreciation $36 Wages $67 Investment (I) $124

Business Profits $200 Indirect Taxes $74 Rental Income $75 Net Export $18 Net Factor payment $12
Government Purchases (G) $156 Household Consumption (C) $304

Question Consider the above information in table and calculate.

(a) GDP with income and expenditure approach.(b) GNP (c) NNP(d) Current Account Balance

National Income (f) National Saving (g) Private saving (h) Govt: Saving

Question ABC Computer Company has a $20,000,000 factory in Silicon Valley. During the current
year ABC builds $2,000,000 worth of computer components. ABC's costs are labor, $1,000,000;
interest on debt, $100,000; and taxes, $200,000. ABC sells all its output to XYZ Supercomputer.
Using ABC's components, XYZ builds four supercomputers at a cost of $800,000 each ($500,000
worth of components, $200,000 in labor costs, and $100,000 in taxes per computer). XYZ has a
$30,000,000 factory. XYZ sells three of the supercomputers for $1,000,000 each. At year's end, it
had not sold the fourth. The unsold computer is carried on XYZ's books as an $800,000 increase in
inventory.

a . Calculate the contributions to GDP of these transactions, showing that all three approaches give
the same answer.

b. Repeat part (a), but now assume that, in addition to its other costs, ABC paid $500,000 for
imported computer chips.

Question : : You are given the following information about an economy:

Gross private domestic investment = 40

Government purchases of goods and services = 30
Gross national product (GNP) = 200
Current account balance = -20
Taxes = 60
Government transfer payments to the domestic private sector = 25
Interest payments from the government to the domestic private sector = 15 (Assume all interest
payments by the government go to domestic households.)
Factor income received from rest of world = 7
Factor payments made to rest of world = 9

Find the following, assuming that government investment is zero:

a. Consumption
b. Net exports
c. GDP
d. Net factor payments from abroad
 e. Private saving
f Government saving
g. National saving

Question:: In a Keynesian macroeconomic system, the following relationships and values hold:

C = 0.8Yd, M = 0.2Yd, Yd = (1 − t) Y,

t = 0.2, G = 400, I = 300, X = 288 & NFP = 0

What is value of?

(a) GDP
(b) The government’s budget surplus/deficit,
(c) Current Account balance
(d) Private saving