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The Following Data Summarize the Expenditures for the Country of XYZ

Question 97

Essay

The following data summarize the expenditures for the country of XYZ during 2003 in millions of alphabet, the currency of country XYZ.
 Gross Private Domestic Investment $300 Business Fixed Investment $200 Change in Inventories $100 Exports $200 Imports $200 Personal Consumption Expenditures $800 Government Consumption Expenditures and  Gross Investment $500 StatisticalDiscrepancy $10 Depreciation Expenditures $50\begin{array}{|l|r|}\hline \text { Gross Private Domestic Investment } & \$ 300 \\\hline \text { Business Fixed Investment } & \$ 200 \\\hline \text { Change in Inventories } & \$ 100 \\\hline \text { Exports } & \$ 200 \\\hline \text { Imports } & \$ 200 \\\hline \text { Personal Consumption Expenditures } & \$ 800 \\\hline \begin{array}{l}\text { Government Consumption Expenditures and } \\\text { Gross Investment }\end{array} &\$ 500 \\\hline \text { StatisticalDiscrepancy } &\$ 10 \\\hline \text { Depreciation Expenditures } & \$ 50 \\\hline\end{array}
a. Calculate net exports
b. Calculate GDP
c. Calculate national income
d. Assume that the GDP deflator is 120 and calculate real GDP for 2003.

Correct Answer:

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a. F = X - M = $200 - $200 = 0
b. GDP = ...

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