General Question

adr's avatar

First-year Macroeconomics question: see details?

Asked by adr (434points) May 1st, 2011

93. Consider the following information on an economy (in billion dollars):
GNP 340
Private Consumption 150
Public Consumption 90
Export 120
Transfer payments 20
Import 170
Depreciation 40
Taxes 60

(A) Private savings =90, disposable income =260 and Net import =50;
(B) Net investment =110, Private savings = 110, disposable income = 260
(C) Net Investment =150, disposable income = 260 Savings=110;
(D) Net domestic investment =110, disposable income =240, private savings =110
(E) None of the above

Can someone explain HOW to get the answer please

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4 Answers

BarnacleBill's avatar

This is solved by going back and revisiting the basic definitions and concepts of macroeconomics.

adr's avatar

Thank you, that helped. But I’m still not sure how to calculate the net investment from the given figures.

jrpowell's avatar

@adr :: You can’t figure it from the info given. Econ is a mindfuck like that.

adr's avatar

ok. I’ve two more questions, then I’m done the section. I can’t get them from that website @BarnacleBill gave me. Any help would be GREAT

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