ME, Quiz2, Total Marks: 10 (Any Two)
ME, Quiz2, Total Marks: 10 (Any Two)
ME, Quiz2, Total Marks: 10 (Any Two)
1. Use the following data to measure a country’s balance on current account, balance on
capital account and balance of payments.
2.
Item Amount($ billions)
Merchandise exports 1148
Merchandise imports 1968
Service exports 497
Service imports 378
Income receipts 818
Income payments 736
Net transfer payments 113
Statistical discrepancy 41
Capital inflows 2063
Capital outflows 1290
Based on the above information, calculate current account, capital account and balance of
payments. (5+5)
1
3. The following questions refer to this table:
Aggregate Output/ Income Consumption Planned Investment
2000 2100 300
2500 2500 300
3000 2900 300
3500 3300 300
4000 3700 300
4500 4100 300
5000 4500 300
5500 4900 300
(a) At each level of output, calculate saving. At each level of output, calculate
unplanned investment (inventory change). What is the equilibrium level of
output? (5)