5 - The components of a nations gross domestic product were identified and discussed in this chapter. Assume the following accounts and amounts were reported by a nation last year. Government expenditures (purchases of goods and services) were $5.5 billion, personal consumption expenditures were $40.5 billion, gross private domestic investment amounted to $20 billion, capital consumption allowances were $4 billion, personal savings were estimated at $2 billion, imports of goods and services amounted to $6.5 billion, and the exports of goods and services were $5 billion.

6. Assume that some of the data provided in Problem 5 change next year. Specifically, government expenditures increase by 10 percent, gross private domestic investment declines by 10 percent, and imports of goods and services drop to $6 billion. Assume the other information as given remains the same.