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Question: suppose that as an economist working for the bureau of...

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Suppose that as an economist working for the Bureau of Labor Statistics youre given the following information for the current year: Private Disposable Income -- Federal Budget Deficit National Saving Total Domestic Investment- Total Tax Revenue Depreciation Investment Transfer Payments Gov. Interest Payments Net Factor Payments $20,000 $2,000 $3,000 $12,000 $5,000 $3,000* $1,500 S0 $1,000 *Depreciation Investment is included in total investment. With these figures, compute the following: (a)What is the level of private saving and consumption in this economy? (b)What is the level of government purchases? (c)What is the amount of net exports and the current account. Is the country running a foreign trade surplus or deficit? (d) Compute the amount of Gross Domestic Product that this economy is generating for the given year. (e) Besides GDP, we are also interested in some other measures of income. Compute GNP and Net National Product (f)Suppose that a technology company needs to finance an additional $1000 of new capital. If the current account, government saving, and private disposable income remain the same what must happen to private saving and consumption? (g) Suppose the governments budget deficit increases to $3,000. Assuming the level of Private Saving, Investment, and Net Factor Payments remain the same, calculate Net Exports. Is there a twin deficits phenomena?

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