Question
The year is 2018. Funland's GDP is $550 billion. Funland has a current account deficit of $45 billion. Funland's capital account is in a $9
The year is 2018. Funland's GDP is $550 billion. Funland has a current account deficit of $45 billion. Funland's capital account is in a $9 billion surplus. In addition, Funland factors located in foreign countries earn $12 billion. Funland has a trade deficit of $33 billion. Assume Funland neither gives nor receives unilateral transfers, and assume that there are no capital gains on external wealth.
- What was the change in Funland's external wealth (W) during 2018?
- Compute Funland's net factor income from abroad (NFIA).
- How much income did foreign factors of production earn in Funland (IMFS)?
- Compute Funland's gross national expenditure (GNE), gross national income (GNI), and gross national disposable income (GNDI).
- If Funland's external wealth was -$100 billion at the end of 2017, what was it at the end of 2018?
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International Economics
Authors: Robert C. Feenstra, Alan M. Taylor
3rd edition
978-1429278515, 142927851X, 978-1319029517, 1319029515, 978-1429278447
