The Expenditures Approach - Gross versus Net Investment Exercise 2
Suppose an economy starts the year with $100 million in capital, and during the course of a year, it adds $20 million of gross investment. Economists estimate that the depreciation rate for this economy is 9% per year.
a. Calculate depreciation and net investment for this economy.
Depreciation: $ ________ million
Net investment: $_______ million
b. Now calculate the amount of next year's beginning capital stock for this economy.
$ _________ million
The Expenditures Approach - Net Exports Exercise 2
The table below shows nominal GDP, exports, and imports for the United States.
Year | Nominal GDP (billions of dollars) | Exports (billions of dollars) | Imports (billions of dollars) |
| 2013 | $17,078.3 | $2,324.6 | $2,787.5 |
| 2014 | 17,703.7 | 2,352.3 | 2,901.5 |
Instructions: Round your answers to 1 decimal place. Include a negative sign if necessary.
a. Calculate the value of net exports in 2013.
$ ________ billion
b. Calculate the value of net exports in 2014.
$ ________ billion
9 years ago
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