Q. 1 Using the following information about an economy:

Gross private domestic investment = 40

Government purchases of goods and services = 30

Gross national product (GNP) = 200and

Current account balance = -20andTaxes = 60

Government transfer payments to the domestic private sector = 25

Interest payments from the government to the domestic private sector = 15 (Assume all interest

payments by the government go to domestic households.)

Factor income received from rest of world = 7

Factor payments made to rest of world = 9

Find the following, assuming that government investment is zero:

a. Consumption

b. Net exports

c. GDP

d. Net factor payments from abroad

e.Private saving

f.Government saving

g. National saving