5 bill 5 bill Household consumption 2000 Beginning – of – year inventory stocks 1000 Depreciation 100 End – of – year inventory stocks 800 Exports

Use information from the flowing table to calculate the values of: (i) Gross investment (ii) Net investment (iii) GDP (iv) National saving (v) Public saving

Question 2 The following equation describes the relationship between investment and capital.

5 bill5 billHousehold consumption2000Beginning – of – year inventory stocks1000Depreciation100End – of – year inventory stocks800Exports500Business fixed investment1200Government consumption2000Government transfer payments491Private residential construction1500Government interest payments109Sales of existing houses100Indirect taxes less subsidies500Imports1000Direct taxes1500Capital Stock8000Payments to owners of capital1800

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