Calculate depreciation and net investment for the economy

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Assignment

The Expenditures Approach - Gross versus Net Investment

Suppose an economy starts the year with $100 million in capital, and during the course of a year, it adds $20 million of gross investment. Economists estimate that the depreciation rate for this economy is 9% per year.

a. Calculate depreciation and net investment for this economy.

b. Now calculate the amount of next year's beginning capital stock for this economy.

The Expenditures Approach - Net Exports Exercise 2
The table below shows nominal GDP, exports, and imports for the United States.

Year

Nominal GDP (billions of dollars)

Exports (billions of dollars)

Imports (billions of dollars)

2013

$17,078.3

$2,324.6

$2,787.5

2014

17,703.7

2,352.3

2,901.5

Instructions: Round your answers to 1 decimal place. Include a negative sign if necessary.

a. Calculate the value of net exports in 2013.

b. Calculate the value of net exports in 2014.

Reference no: EM131531426

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