Question
The following data (figures in $m) characterizes the economy of ACTLand in 2021: Consumption is 100. Stock of physical capital is 200. Production at home
The following data (figures in $m) characterizes the economy of ACTLand in 2021: Consumption is 100. Stock of physical capital is 200. Production at home is valued at 40. Business investment is 50. Depreciation is 10. Government transfer payments (e.g. pensions) is 20. Household purchases of new dwellings is 15. Tax Revenue is 50. Government purchases is 40. The sum of all (vages is 135. Exports are 80. Imports are 60. The sum of all profits is 90. The sum of all second hand transactions is 120. Public debt: 100. Calculate: (1 mark each) i) expenditure measure of GDP ii) national income ili) net change in the stock of physical capital over 2021 iv) the Government's budget balance (indicate if it is a surplus or deficit) v) net change in public debt over 2021
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