National Income and Product Accounts

Balance of Payments Accounts

Consumption

1100

Capital account

50

Investment

800

Domestic income payments to foreign factors

400

Government spending

200

Net unilateral transfers

-8

Net taxes collected

150

Trade balance

-80

Gross national income

1800

The above table represents data for TTYL during 2015. The values are in millions of dollars. Answer the following questions accordingly.

a.What is the value of gross national expenditure?

b.What is the value of gross domestic product?

c.What is the value of foreign income payments to domestic factor services?

d.What is the value of current account for TTYL?

e.What is the value of gross national disposable income?

f.What is the value of national saving in TTYL?

g.[6 points] During the next year, 2016, TTYL experienced an increase in investment spending, and at the same time, the government budget went from a deficit to surplus. All else equal, how would these two changes affect the current account balance? Explain why.