Macroeconomics 11th Edition by Michael Parkin

تمرين 18

S. Economy Shrinks Modestly
GDP fell 1 percent as businesses cut investment by 8.9 percent, consumers cut spending by 1.2 percent, purchases of new houses fell 38 percent, and exports fell 29.9 percent.
Use the letters on the figure in problem to indicate the flow in which each item in the news clip occurs. How can GDP have fallen by only 1.0 percent with the big expenditure cuts reported?
Problem
Use the following figure, which illustrates the circular flow model, to work Problem.

During 2008, in an economy:
Flow B was $9 trillion.
Flow C was $2 trillion.
Flow D was $3 trillion.
Flow E was -$0.7 trillion.
Name the flows and calculate the value of
a. Aggregate income.
b. GDP.