Referring to the table below, fill in the missing data for the country of Birchwood. Expenditures Consumption Gross investment Government spending Net exports Gross domestic product at market prices Less depreciation Less indirect taxes (net of subsidies) Net domestic product at basic prices +/- Net foreign factor income Net national product at basic prices 370 115 190 90 765 40 60 665 -45 620 Incomes Compensation of employees Gross operating surplus Gross mixed income Taxes less subsidies on production Indirect taxes (net of subsidies) Gross domestic income at market prices Less depreciation Less indirect taxes (net of subsidies) Net domestic income at basic prices +/- Net foreign factor income. (Net) national income - 470 90 50 60 7 40 60 -45

Referring to the table below, fill in the missing data for the country of Birchwood. Expenditures Consumption Gross investment Government spending Net exports Gross domestic product at market prices Less depreciation Less indirect taxes (net of subsidies) Net domestic product at basic prices +/- Net foreign factor income Net national product at basic prices 370 115 190 90 765 40 60 665 -45 620 Incomes Compensation of employees Gross operating surplus Gross mixed income Taxes less subsidies on production Indirect taxes (net of subsidies) Gross domestic income at market prices Less depreciation Less indirect taxes (net of subsidies) Net domestic income at basic prices +/- Net foreign factor income. (Net) national income - 470 90 50 60 7 40 60 -45

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter23: The International Trade And Capital Flows

Section: Chapter Questions

Problem 17SCQ: For each of the following, indicate which type of government spending would justify a budget deficit...

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Referring to the table below, fill in the missing data for the country of Birchwood. Expenditures Incomes Consumption 410 Compensation of employees 510 Gross investment 135 Gross operating surplus Government spending 215 Gross mixed income 90 Net exports 110 Taxes less subsidies on production 50 Indirect taxes (net of subsidies) 60 Gross domestic product at market prices Gross domestic income at market prices Less depreciation 40 Less depreciation 40 Less indirect taxes (net of subsidies) 60 Less indirect taxes (net of subsidies) 60 Net domestic product at basic prices Net domestic income at basic prices +/− Net foreign factor income −45 +/− Net foreign factor income −45 Net national product at basic prices (Net) national income Add transfer payments 130 Less undistributed profit 30 Less corporate profit tax 40 Less other income items 30 Personal income Answer
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Hi, could you help me solve this problem? Desired demand is DD = C +Ip +G+NX, where consumption C = a+b(Y −T), Ip is planned investment, G government consumption and T net taxes. Y denotes domestic output. Net exports are NX = cY f − dY , where Y f is foreign output (output of export countries). Parameters a, b, c, and d are all strictly positive and b > d. In equilibrium, Y = DD. By how many units (e.g. billions of euros) does domestic equilibrium output increase if go- vernment consumption is increased by 1 one unit? (Hint: solve for equilibrium Y as a function of G.) How and why does international trade affect the fiscal multiplier?
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