Question:

Find investment component of GDP (macroeconomics q)

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Given the following data for an economy, compute the investment component of GDP:

Consumption expenditures-1000

Imports-600

Government purchases-700

Construction of new homes and flats-500

Sales of existing homes and flats-600

Exports-500

Government payments to retirees-200

Household purchases of durable goods-300

Beginning-of-year inventories-500

End-of-year inventories-600

Business fixed investment-300

A- 300

B- 400

C- 800

D- 900

E- 1000

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1 ANSWERS


  1. D- 900

    I= 300 + [ 600 - 500 ] + 500 = 300 + 100 + 500 = 900

    Sample is here:

    http://www.sfu.ca/~jennyx/Econ%20105%20A...

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