Assignment
The Expenditures Approach - Gross versus Net Investment
Suppose an economy starts the year with $100 million in capital, and during the course of a year, it adds $20 million of gross investment. Economists estimate that the depreciation rate for this economy is 9% per year.
a. Calculate depreciation and net investment for this economy.
b. Now calculate the amount of next year's beginning capital stock for this economy.
The Expenditures Approach - Net Exports Exercise 2
The table below shows nominal GDP, exports, and imports for the United States.
|
Year
|
Nominal GDP (billions of dollars)
|
Exports (billions of dollars)
|
Imports (billions of dollars)
|
|
2013
|
$17,078.3
|
$2,324.6
|
$2,787.5
|
|
2014
|
17,703.7
|
2,352.3
|
2,901.5
|
Instructions: Round your answers to 1 decimal place. Include a negative sign if necessary.
a. Calculate the value of net exports in 2013.
b. Calculate the value of net exports in 2014.