Question

We have the following data for a hypothetical open​ economy: GNP​ = ​$10 comma 00010,000 Consumption​ (C) = ​$8 comma 2008,200 Investment​ (I) = ​$1 comma 2001,200 Government Purchases​ (G) = ​$1 comma 2001,200 What is the value of the current account​ balance? ​$nothing ​(Enter your answer as an integer. Include a minus sign if necessary​).

Answer 1

Current account​ balance. = -$600

Step-by-step explanation:

Given:

GNP = $10,000

Consumption (C) = $8,200

Investment (I) = $1,200

Government Purchases (G) = $1,200

Find:

Current account​ balance.

Computation:

GNP = Consumption (C) + Investment (I) + Government Purchases (G) + Current account​ balance.

$10,000 = $8,200 + $1,200 + $1,200 + Current account​ balance.

Current account​ balance. = $10,000 - $10,600

Current account​ balance. = -$600