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What does business fixed investment equal

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1. If net exports are -$184 billion and exports are $560 billion. How much are imports?

2. Inventory investment is $62 billion and total investment is $1.122 trillion. What does business fixed investment equal?

3. Suppose Consumption (C) = 600, Investment (I) = 250, Government Spending (G) = 150, and Net Exports (Xn) = 0

1. Calculate gross domestic product (GDP).

2. Calculate each component's share of GDP.

3. Suppose government spending increases to 200, but the other components of GDP do not change. What is government spending's share of GDP now? What is the new non-government share?

4. Suppose that the level of potential GDP (Y*) is 1000 and is unaffected by the increase in government spending described previously. Without doing any calculations, explain in general terms what happens to C/Y*, X/Y*, and I/Y* after the government spending increase in (b).

Reference no: EM133278033

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