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  • DF Unit 6

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    Ben Obi
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    The document provides data on various economic variables including consumption, government purchases, investment, exports, imports, bond purchases, and earnings from foreign investments. It then shows calculations to determine net foreign investment of 250 billion G, net exports of -100 billion G, GDP of 550 billion G, and GNP of 600 billion G using the given data and standard formulas. The calculations are shown to derive key economic metrics from the available consumption, investment, trade, and financial data.

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    The document provides data on various economic variables including consumption, government purchases, investment, exports, imports, bond purchases, and earnings from foreign investments. It then shows calculations to determine net foreign investment of 250 billion G, net exports of -100 billion G, GDP of 550 billion G, and GNP of 600 billion G using the given data and standard formulas. The calculations are shown to derive key economic metrics from the available consumption, investment, trade, and financial data.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    Download as docx, pdf, or txt
    13 views2 pages

    DF Unit 6

    Uploaded by

    Ben Obi
    The document provides data on various economic variables including consumption, government purchases, investment, exports, imports, bond purchases, and earnings from foreign investments. It then shows calculations to determine net foreign investment of 250 billion G, net exports of -100 billion G, GDP of 550 billion G, and GNP of 600 billion G using the given data and standard formulas. The calculations are shown to derive key economic metrics from the available consumption, investment, trade, and financial data.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    of 2

    Available data for computation

    Consumption 350 billion G


    Transfer payments 100 billion G
    Investment 100 billion G
    Government purchases 200 billion G
    Exports 50 billion G
    Imports 150 billion G
    Bond purchases 200 billion G
    Earnings on foreign investments 75 billion G
    Foreign earnings on Amagre investment 25 billion G

    1. Compute net foreign investment

    Net foreign investment = Bond Purchases +Earnings on foreign investments - Foreign earnings
    on Amagre investment

    = 200 + 75 - 25
    = 250 billion G

    2. Compute net exports.

    Net exports = Exports - Imports

    = 50 - 150
    = -100 billion G

    3. Compute GDP.

    GDP = Consumption + Government purchases + Investment + Net exports

    = 350 + 200 + 100 - 100


    = 550 billion G

    4. Compute GNP.

    GNP = GDP + Net factor earnings from abroad

    = 550 + (75 - 25)


    = 600 billion G

    I got all my answers using formulas created to calculate each variable I wanted from the data I
    was given.

    Reference:

    Rittenberg, L. & Tregarthen, T. (2009). Principles of Economics. Flat World


    Knowledge. https://my.uopeople.edu/mod/page/view.php?id=310453

    Seth, S. (2022, Jun). GDP vs GNP: What’s the


    Difference? https://www.investopedia.com/ask/answers/030415/what-functional-
    difference-between-gdp-and-gnp.asp

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