Benton Knox

Chapter 5 Problems

ECO 203

2/20/2022

(All amounts in billions of dollars)

Consumption = 200

Depreciation = 20

Retained Earnings = 12

Gross Investment = 30

Imports = 60

Exports = 50

Net Foreign Factor Income = 10

Government Purchases = 80

a. GDP = C + GI +GP + X – I
a. GDP = 200 + 30 + 80 + 50 – 60 = $300 billion
b. Net Inv = GI – D
a. NI = 30 – 20 = $10 billion
c. Nat Inc = GDP – D + NFFI
a. Nat Inc = 300 – 20 +10 = $290 billion