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Nova consumption in 2016

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Reference no: EM132417913

Problem: In the fictional country of Nova, we have the following information for the year 2016:

  • Consumers bought $2 billion dollars worth of goods and services, 20% of which were produced and initially sold in 2016.
  • Labour wage income was $250 million in 2016*
  • Businesses invested $100 million dollars in new capital (i.e. machinery) stock in 2016.
  • Businesses also bought $200 million dollars worth of company stocks in 2016.
  • Foreigners with working visas in Nova lived in foreign-only households that bought $200 million worth of locally made goods and services in 2016.
  • The government of Nova bought $250 million worth of new ambulances for government run hospitals in 2016.
  • Citizens of Nova living overseas bought $100 million worth of Nova goods.

Question 1: Calculate and explain how you obtained the figure (i.e. what did you count, and what did you exclude) for Nova's consumption in 2016?

Question 2: Calculate and explain how you obtained the figure (i.e. what did you count, and what did you exclude) for Nova's investment in 2016?

Reference no: EM132417913

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