Calculate the country economic growth

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(a) Suppose your annual income in 2014 was $150,000. Using 2013 as the base year, calculate your real 2014 income measured in 2013 dollars if the CPI is 105 in 2014.

(b) Explain how net exports affect an economy. Calculate a country's current account balance if country's total income accruing to its residents is $150 billion, consumption is $120 billion and country's total spending on capital goods by private sector and government is $30 billion.

(c) Suppose a country's nominal GDP increases from $100 billion in 2012 to $120 billion in 2013. The GDP implicit price deflator was 100 in 2012 and 100.1 in 2013. Calculate the country's economic growth.

Reference no: EM131081687

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