Question
a.In the country of Classica, we have the following information for the year 2012: *Consumption stood at $1 billion dollars worth of new goods and
a.In the country of Classica, we have the following information for the year 2012:
*Consumption stood at $1 billion dollars worth of new goods and services, 20% of which were bought by foreigners residing there.
*New housing stock worth $100 million was sold.
*Company profit totalled $200 million.
*Businesses bought $150 million dollars worth of bonds.
*The government of Classica bought $200 million worth of guns for the military.
*Citizens of Classica living overseas bought $50 million worth of goods from Classica.
(i)Calculate and explain how you obtained the figure (i.e. what did you count, and what did you exclude) for Classica's consumption in 2012
(ii)Calculate and explain how you obtained the figure (i.e. what did you count, and what did you exclude) for Classica's investment in 2012
What was Classica's GDP in 2012? Explain your answer
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