Question
You are given the following information Durable good consumption 462 Residential investment 526 987 Imports Government...
You are given the following information Durable good consumption 462 Residential investment 526 987 Imports Government expenditure Receipts of factor income from abroad 1259 45 Personal income 7863 Nonresidential investment 66 Nondurable goods 893 1056 Exports Services 7638 Depreciation 125 Change in inventories 26 Payments of factor income abroad 59 Personal taxes 2538 Find
Answers
I or Gross Investment is component of the GDP.
Calculate Investment (I) -
Investment = Residential Investment + Nonresidential Investment + Change in Inventories
Investment = 526 + 66 + 26
Investment = 618
Thus,
The Investment (I) is 618
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