Question 3. GDP by expenditure and by income method(a) You have the following data from the national accounts: the private consumption is 8, thepublic spending 4, the sales tax is 2, the investment exceeded the depreciation threefold, 9 to 3,the wage income was 12. However, $1 of the national income came in net factor income fromabroad. Imports exceeded exports by $2. Find the capital income in the economy.(b) Among the US, Europe, and China, which is the above economy representative of? Explainwhy.(c) Suppose BEA forecasted the US expenditure based on the assumption that the governmentwill buy American-made buses.How will the expenditure change if the government buys Chinese-made buses instead?How will the government spending change?How will consumption change?

Question 3. GDP by expenditure and by income method (a) You have the following data from the national accounts: the private consumption is 8, the public spending 4, the sales tax is 2, the investment exceeded the depreciation threefold, 9 to 3, the wage income was 12. However, $1 of the national income came in net factor income from abroad. Imports exceeded exports by $2. Find the capital income in the economy.

Question 3. GDP by expenditure and by income method (a) You have the following data from the national accounts: the private consumption is 8, the public spending 4, the sales tax is 2, the investment exceeded the depreciation threefold, 9 to 3, the wage income was 12. However, $1 of the national income came in net factor income from abroad. Imports exceeded exports by $2. Find the capital income in the economy.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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