Complete the following table using the selected NIPA tables in the current issue
ID: 1164919 • Letter: C
Question
Complete the following table using the selected NIPA tables in the current issue of “The Survey of Current Business” (www.bea.gov). The tables in “The Survey of Current Business” are organized as follows:
Tables 1.*.* Gross Domestic Product and its components
Tables 2.*.* Personal income and its disposition
Tables 3.*.* Current government receipts and expenditures
Tables 4.*.* Foreign transactions
Tables 5.*.* Savings and investment
National Income and Product Accounts
2016
(Trillions of $’s)
2017
(Trillions of $’s)
Growth rate
(percent)
Gross national expenditure (GNE)
Personal consumption expenditures (C)
Gross private domestic investment (I)
Government consumption expenditures and gross investment (G)
Gross Domestic Product (GDP)
Net exports of goods and services
Gross National Disposable Income
Current Account (CA)
Net exports of goods and services
Net foreign income from abroad
Net unilateral transfers
Gross National Savings
Gross private savings
Net private savings
Private consumption of fixed capital
Gross government savings
Net public savings
Public consumption of fixed capital
2. According to the National Income and Product Accounts, Gross Private Domestic Investment (I) should equal the sum of Gross National Savings (S) plus Current Account (CA) or I = S - CA. Using the figures given in the table above, whether this is true or not in both 2016 and 2017 by completing the table below. If they are not equal, what is the statistical discrepancy for each year as a percentage of gross domestic product.
Savings and Investment
2016
(Trillions of $’s)
2017
(Trillions of $’s)
Gross private domestic investment
Gross national savings - current account
Gross National Savings (S)
Capital Account (CA)
Statistical discrepancy
Statistical discrepancy as a percent of GDP
Briefly explain how a current account deficit contributes to the pool of funds available for gross private domestic investment. How is this related to the trade balance?
National Income and Product Accounts
2016
(Trillions of $’s)
2017
(Trillions of $’s)
Growth rate
(percent)
Gross national expenditure (GNE)
Personal consumption expenditures (C)
Gross private domestic investment (I)
Government consumption expenditures and gross investment (G)
Gross Domestic Product (GDP)
Net exports of goods and services
Gross National Disposable Income
Current Account (CA)
Net exports of goods and services
Net foreign income from abroad
Net unilateral transfers
Gross National Savings
Gross private savings
Net private savings
Private consumption of fixed capital
Gross government savings
Net public savings
Public consumption of fixed capital
Explanation / Answer
The NIPA table is completed below:
National Income and Product Accounts 2016 2017 Growth rate (Trillions of $’s) (Trillions of $’s) (percent) Gross national expenditure (GNE) 18.8216 19.6074 4.17% Personal consumption expenditures (C) 12.8207 13.3955 4.48% Gross private domestic investment (I) 3.0572 3.2128 5.09% Government consumption expenditures and gross investment (G) 3.2678 3.3538 2.63% Gross Domestic Product (GDP) 18.6245 19.3906 4.11% Net exports of goods and services -0.5212 -0.5716 9.67% Gross National Disposable Income 13.9686 14.3804 2.95% Current Account (CA) -0.4609 -0.485 5.23% Net exports of goods and services 2.2146 2.344 5.84% Net foreign income from abroad 0.8443 0.9347 10.71% Net unilateral transfers 0.2766 0.2658 -3.90% Gross National Savings 3.3532 3.3866 1.00% Gross private savings 3.6917 3.6915 -0.01% Net private savings 1.3011 1.1951 -8.15% Private consumption of fixed capital 2.3905 2.4964 4.43% Gross government savings -0.3385 -0.305 -9.90% Net public savings -0.8647 -0.8433 -2.47% Public consumption of fixed capital 0.5262 0.5383 2.30%