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"You are provided with the following data on the economy of Iberia: GDP was $100 billion, net taxes were $18 billion, government purchases of goods and services were $20 billion, household saving was $15 billion, consumption expenditure was $67 billion, investment was $21 billion, and exports of goods and services were $30 billion. "

I need to find the net exports but can't do that without the import value, but I don't know how to get the number with this set of data.

2007-02-18 04:25:59 · 1 answers · asked by ohok 2 in Social Science Economics

1 answers

Simple macroeconomics.
Y=C+I+G+(X-M)
were Y is GDP
C is personal consumption
I is gross private domestic investment
G is Government consumption
X is exports
M is imports

you know Y is 100
you know C is 67
you know G is 20
you know I is 21
you know X is 30
100=67+21+20+(30-m)
100=108+(30-m)
100=138-m
m=38

Thus net exports are a negative US$8 billion

2007-02-21 05:54:06 · answer #1 · answered by MSDC 4 · 0 0

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