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Unformatted text preview: the expenditure approach. Please use the following template to illustrate your answers. Gross Production Statement Costs Receipts Raw Materials Sales of Product Other Business Expenses Inventory Change Gross Value of Inputs Gross Value of Output GDP Production Statement Costs Receipts Sales of Product - Raw Materials Inventory Change Value Added from Inputs Value Added to Output b. Determine the current account surplus. HINT: Current Account (CA) equals Net Exports (NX) plus Net Factor Payments from Abroad (NFP). See top of page 40 in the text (6 th. ed.). c. What is GNP in this economy? Now consider an alternative case in which foreigners own the coal producer, so that the profits of the domestic coal go to foreigners and are not distributed to domestic consumers. Determine GNP and GDP in this case. 2. Textbook Chapter 2: Numerical Problem #6:...
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- Spring '08
- Economics, producer, Value added, National accounts, steel producer, coal producer, Costs Receipts Sales