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You are given the following data overleaf on Adam Island for 2021. Based on your understanding of what is included as investments in macroeconomics you
You are given the following data overleaf on Adam Island for 2021. Based on your understanding of what is included as investments in macroeconomics you are required to identify these items and sum accordingly to obtain the following: See Slide 7 of the power point presentation Measuring the Economy and the Circular Flow of Income. a. What is the value of gross private investment for 2021. 4 marks b. What is the value of net investment in 2021. 1 mark c. If on January 1, 2021 Adam Island had a capital stock of $40.0 million, based on your answer from "b" above what will be the closing capital stock in 2021. 1 mark NB. In economics the fact that individuals or firms will have deposits etc at bank or the fact that firms float bonds or stocks is NOT CONSIDERED INVESTMENT. Investment. Adam Island 2021 Millions of Dollars Purchase of factory shells by firms to manufacture goods $120 Purchase of new equipment by firms to manufacture goods 90 Sales value of newly issued stocks and bonds by firms 85 Household purchases of new furniture 345 Depreciation 65 Net additions to inventories by firms 25 Exports of goods 130 Imports 90
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