Saturday, 14 June 2014

Expenditure

Given the Expenditure Side of Aggregate Output in the Economy

5. Given the Expenditure Side of Aggregate Output in the Economy:

 Personal Consumption $200

 Government Purchases 50

 Gross Private Investment 40

 Exports 30

 Imports 40

a) Calculate the Gross Domestic Product

b) Calculate the Net Exports

c) Why only Final Sale Prices are included in the GDP?

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