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You are given the following information about an economy:
Gross Investment = 40
Govt. purchases of goods & service = 30
GNP = 200
X - M = -20
Personal Tax = 60
Govt. transfer = 25
Interest payments from the Govt. to domestic Pvt. Sector = 15
Factor income received from the rest of the would = 7
Factor payment made to rest of would = 9
Calculate:
a) Consumption
b) GDP
c) Net factor payment from abroad
d) Pvt. Saving
e) Public Saving.
Habelers theory of opportuniyu cost
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