Category Billions of Dollars Consumption 200 Depreciation 20 Retained earnings 12 Gross investment 30 Imports 50 Exports 40 Net foreign factor income 10 Government purchases 60 Instructions: Enter your responses rounded to the nearest whole number. a. How much is GDP? $ 342 billion b. How much is net investment? $ 10 billion c. How much is national income? $ 372 billion

GDP = 280 billion

Net investment = 10 billion

National income = 270 billion

Explanation:

given data

Consumption = 200

Depreciation = 20

Retained earnings = 12

Gross investment = 30

Imports = 50

Exports = 40

Net foreign factor income = 10

Government purchases = 60

solution

we get here GDP that is express as

GDP = Consumption + Gross investment + Government purchases + Net exports ... 1

Net exports = (Exports - Imports)

so put here value

GDP = 200 + 30 + 60 + 40 - 50

GDP = 280 billion

and

Net investment will be as

Net investment = Gross investment - Depreciation ... 2

Net investment = 30 - 20

Net investment = 10 billion

and

National income = GDP - Depreciation + Net foreign factor income ... 3

National income = 280 - 20 + 10

National income = 270 billion