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Assume that the economy is closed (so imports and exports are equal to zero). A...
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Assume that the economy is closed (so imports and exports are equal to zero). Also assume that all government expenditure is for current consumption and not investment. Use information from the following table to calculate the value of (gross) investment in the economy in billions of dollars
| $bn |
| $bn |
Household consumption | 1,500 | Retained earnings | 50 |
Depreciation | 20 | Tax revenue | 100 |
Government expenditure | 150 | Machinery investment | 400 |
Capital stock | 1,000 | Dwelling investment | 350 |
Government transfer payments | 400 | Purchase of company shares | 5 |
Government interest payments | 5 | GDP | 2,500 |
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100%
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