4130-I EXERCISE 4

Given are the following data (in billions of dollars) for an open economy, i.e. an economy having transactions with the rest of the world:

Private final consumption expenditure Government final consumption expenditure Investment in stocks Investments in fixed assets Exports of goods and services Imports of goods and services Indirect taxes Subsidies Depreciation Wages and salaries paid by domestic producers * to HH * to ROW Wages and salaries received by HH from abroad Distributed profits received by HH from ENT Interest received by HH from GOVT Dividends and interest received by HH from ROW Interest received by ENT from GOVT Dividends and interest received by ENT from ROW Distributed profits received by GOVT from ENT Dividends and interest received by ROW from ENT Direct taxes * paid by HH * paid by ENT Other current transfers received by HH * from GOVT * from ROW Other current transfers received by GOVT * from ROW Other current transfers received by ROW * from HH

50 10 3 15 8 12 7 4 5

43 2 1 15 1 3 2 4 2 1

10 4

6 1

NB:

HH = households sector; ENT = Enterprises sector; GOVT = Government sector; ROW = Rest of World

Questions:

Construct the following accounts: 1. 2. 3. 4. 5. 6. 7. a production account for the economy an income-outlay account for the household sector an income-outlay account for the enterprises sector an income-outlay account for the government sector an income-outlay account for the economy a capital account for the economy an external account for the economy