Question
Suppose a country's gross domestic product (GDP) is measured by summing the money value of expenditures made by groups of identifiable economic agents in the
Suppose a country's gross domestic product (GDP) is measured by summing the money value of expenditures made by groups of identifiable economic agents in the economy over a given period (e.g., a year). (a) Describe the identifiable group of economic agents responsible for the net export (X-M), and what does it mean if this account was -140 billion rands in SA in 2018? (9 pts) 3 (b) In light of the scenario in (a), if SA's fiscal budget balance in 2018 was -240 billion rands, what would have been the relationship between net export and SA's domestic private savings in 2018? (9 pts) (c) Suppose economic growth in SA in both 2017 and 2018 were 1.5% and 2%, respectively; what would be your concern regarding external debt and what government can do, in your view, to assist in light of your concern or view about the debt situation? (9 pts)
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