5.8 A small government-less open economy’s only production is ambrosia that is popular around the world...
5.8 A small government-less open economy’s only production is ambrosia that is popular around the world and, since all the domestic residents are allergic to it, they export the entire production. In the current year:
(i) the country produced $5,000 worth of ambrosia.
(ii) the capital stock within the borders increased by one new $1000 ambrosia processing plant.
(iii) the country’s net factor payments was -$400
(iv) the country’s consumption was $4,500. Based on this information, what would be the country’s current year CA?
Homework Answers
5.8
Capital added during the year= $5,000+$1,000
net factor payments and consumption is not a part of capital accumulation
Current year's CA= $6,000
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5.8 A small government-less open economy’s only
production is ambrosia that is popular around the world...
5.8 A small government-less open economy’s only production is ambrosia that is popular around the world...
5.8 A small government-less open economy’s only production is ambrosia that is popular around the world and, since all the domestic residents are allergic to it, they export the entire production. In the current year: (i) the country produced $5,000 worth of ambrosia. (ii) the capital stock within the borders increased by one new $1000 ambrosia processing plant. (iii) the country’s net factor payments was -$400 (iv) the country’s consumption was $4,500. Based on this information, what would be the...
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