For the next 5 (five) questions, consider the imaginary country. In 2019, the country was a closed economy. For that year, total consumption (C) was $20 million, investment (I) was $10million, and government expenditure (G) was $5 million. In 2020, however, the country decided to open its economy, ending that year with a total consumption (C) of $15 million, investment (I) of $20million, government expenditure (G) of $25 million, exports (X) of $5 million, and imports of (M) of $7 million.
What was the country’s GDP in 2019? In 2020?
What was the country’s trade balance in 2019 and 2020, respectively?
How did opening the economy affected the country’s GDP?
For the year of 2020, suppose that the country’s businesses located in other countries produced $1 million in goods and services, and foreign companies based in that country produced $0.5 million. What is the Gross National Product (GNP) for the country in 2020?