4. The following table shows the gross national expenditure (GNE), as well as income and spending in the balance of payments, from a fictional country called Imaginationland. Item GNE Exports of goods and services Primary income received Secondary income received Imports of goods and services Primary income paid Secondary income paid Income and spending, in Dollars 1000 500 300 200 700 150 300 A (a) Calculate Imaginationland's trade balance and Gross Domestic Product (GDP). Is the country running a trade surplus or a trade deficit? (b) Calculate Imaginationland's Gross National Income (GNI). (c) Calculate Imaginationland's current account balance. Is the country running a current account surplus or deficit? Which component of the current account is the main contributor of current account surplus or deficit?
4. The following table shows the gross national expenditure (GNE), as well as income and spending in the balance of payments, from a fictional country called Imaginationland. Item GNE Exports of goods and services Primary income received Secondary income received Imports of goods and services Primary income paid Secondary income paid Income and spending, in Dollars 1000 500 300 200 700 150 300 A (a) Calculate Imaginationland's trade balance and Gross Domestic Product (GDP). Is the country running a trade surplus or a trade deficit? (b) Calculate Imaginationland's Gross National Income (GNI). (c) Calculate Imaginationland's current account balance. Is the country running a current account surplus or deficit? Which component of the current account is the main contributor of current account surplus or deficit?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:4. The following table shows the gross national expenditure (GNE), as well as income and
spending in the balance of payments, from a fictional country called Imaginationland.
Item
GNE
Exports of goods and services
Primary income received
Secondary income received
Imports of goods and services
Primary income paid
Secondary income paid
Income and spending, in Dollars
1000
500
300
200
700
150
300
4
(a) Calculate Imaginationland's trade balance and Gross Domestic Product (GDP). Is
the country running a trade surplus or a trade deficit?
(b) Calculate Imaginationland's Gross National Income (GNI).
(c) Calculate Imaginationland's current account balance. Is the country running a
current account surplus or deficit? Which component of the current account is the
main contributor of current account surplus or deficit?
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