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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.
Which of the following would indicate the beginnings of an expansion of the economy? a. Fewer new firms are started. b. Stock market prices decline c. Consumer confidence improves
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