Reference no: EM13195238

1. A very small country's gross domestic product is $12 million.

a. If government expenditures amount to $7.5 million and gross private domestic investment is $5.5 million, what would be the amount of net exports of goods and services?

b. How would your answer change in (a) if the gross domestic product had been $14 million?

3. personal income amounted to $17 million last year. Personal current taxes amounted to $4 million and personal outlays for consumption expenditures, nonmortgage interest, and so forth were $12 million.

A. what was the amount of disposable personal income last year?

b. what was the amount of personal saving last year?

C. calculate personal saving as a percentage of disposable personal income.

5. The components that comprise a nation's gross domestic product were identified and discussed in this chapter. Assume the following accounts and amounts were reported by a nation last year: government expenditures (purchases of goods and services) were $5.5 billion; personal consumption expenditures were $40.5 billion; gross private domestic investment amounted to $20 billion; capital consumption allowances were $4 billion; personal savings were esti¬ mated at $2 billion; imports of goods and services amounted to $6.5 billion; and exports of goods and services were $5 billion.

a. Determine the nation's gross domestic product.

b. How would your answer change if the dollar amounts of imports and exports were reversed?