The Following Data Summarize the Expenditures for the Country of XYZ

question 5

Essay

The following data summarize the expenditures for the country of XYZ during 2003 in millions of alphabet, the currency of country XYZ.
$\begin{array}{|l|r|}\hline \text { Gross Private Domestic Investment } & \$ 300 \\\hline \text { Business Fixed Investment } & \$ 200 \\\hline \text { Change in Inventories } & \$ 100 \\\hline \text { Exports } & \$ 200 \\\hline \text { Imports } & \$ 200 \\\hline \text { Personal Consumption Expenditures } & \$ 800 \\\hline \begin{array}{l}\text { Government Consumption Expenditures and } \\\text { Gross Investment }\end{array} &\$ 500 \\\hline \text { StatisticalDiscrepancy } &\$ 10 \\\hline \text { Depreciation Expenditures } & \$ 50 \\\hline\end{array}$ a. Calculate net exports
b. Calculate GDP
c. Calculate national income
d. Assume that the GDP deflator is 120 and calculate real GDP for 2003.

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Definitions:

Advertising Expense

Costs incurred in promoting products or services, typically considered operating expenses.

Period Cost

Expenses that are incurred during a specific time period but are not directly tied to the manufacturing process, such as selling, general, and administrative expenses.

Owners' Equity

The residual interest in the assets of a company after deducting liabilities, representing the owners' claim on the business.

Balance Sheet Valuations

The process of determining the value of assets, liabilities, and equity as they are presented on a company's balance sheet at a specific point in time.