Answer to Question #238526 in Economics for KEBEDE AJEME

Question

Answer following questions, based on the following information on national income accounts of hypothetical economy: GDP $12,000 Gross investment 1,000 Net investment 600 Net Export 3,000 Government expenditure 1,000 Government budget balance 2,000 Net factor payment from abroad -2,000 Indirect Business Tax 2,00

Answer 1

Analyzing and assessing the economic situation in any country is not easy, especially in a dynamic market economy. Many interrelated factors, institutions and mechanisms have to be taken into account. The matter becomes even more complicated when it comes to comparing macroeconomic indicators of different countries. The economy of each state has its own unique specifics (national currency rate, legislation, level of government regulation of business, etc.). Therefore, to assess various macroeconomic indicators of national economies, a unified international system of national accounts (SNA) was developed.