$200m in the domestic country. Consumption is two-thirds of GDP and investment is 25% of GDP. The government withholds 20% of national income in taxes. National savings are $200m. There is no public debt but there is a budget deficit of $100m. Also, import is $30m.Show all these values on a circular flow diagram. (A) Find: net factor payments from abroad, gross domestic product, private consumption and savings, disposable income, taxes and transfers, investment, government spending., net export, export and the current account. (B) Show all of the above values on a circular flow diagram.

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
Author:NEWNAN
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Problem 1. Gross national product is $1000m. Domestic workers earn 300m abroad, and foreign workers earn
$200m in the domestic country. Consumption is two-thirds of GDP and investment is 25% of GDP. The government
withholds 20% of national income in taxes. National savings are $200m. There is no public debt but there is a
budget deficit of $100m. Also, import is $30m.Show all these values on a circular flow diagram.
(A) Find: net factor payments from abroad, gross domestic product, private consumption and savings, disposable
income, taxes and transfers, investment, government spending, net export, export and the current account.
(B) Show all of the above values on a circular flow diagram.
(C) Is there a trade surplus or deficit?
Transcribed Image Text:Problem 1. Gross national product is $1000m. Domestic workers earn 300m abroad, and foreign workers earn $200m in the domestic country. Consumption is two-thirds of GDP and investment is 25% of GDP. The government withholds 20% of national income in taxes. National savings are $200m. There is no public debt but there is a budget deficit of $100m. Also, import is $30m.Show all these values on a circular flow diagram. (A) Find: net factor payments from abroad, gross domestic product, private consumption and savings, disposable income, taxes and transfers, investment, government spending, net export, export and the current account. (B) Show all of the above values on a circular flow diagram. (C) Is there a trade surplus or deficit?
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