Question
(25 points) Use the information on values in chart below (measured in Neverlandian pesos) from the country of Neverland in 2010 to find values for
(25 points) Use the information on values in chart below (measured in Neverlandian pesos)
from the country of Neverland in 2010 to find values for the following categories:
a. Private household production (5 points)
b. Business production (5 points)
c. Fixed investment spending (by business) (5 points)
d. Federal government spending (5 points)
e. National income (5 points)
2. (25 points) Determine whether each of the following belongs on the asset side or the liability
side of the balance sheet identified in parentheses.
a. $20,000 loan for a new automobile (balance sheet for an individual) (5 points)
b. 10-year government bonds (balance sheet for a bank) (5 points)
c. $1,000 checking account (balance sheet for a bank) (5 points)
d. $500 in Federal Reserve notes also known as cash! (balance sheet for an
individual) (5 points)
e. $10,000 student loan (balance sheet for a bank) (5 points)
Household and institutions spending=650 Business spending=50
Household and institution production=150 Exports=225
Net income payments from the rest of the world=5 Imports=125
Nonprofit institutions production=50 Government production=200
State and local government spending=30 Statistical discrepancy=0
Change in private inventories=2 GDP=850
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