In Hong Kong as in much of the world, National Income and GDP data are revised from time to time as new information about the economy comes in. What effects will the following revisions have on consumption, investment, government purchases, net exports, and GDP? Part (a) It is discovered that consumers bought $8 billion more furniture than previously thought. This furniture was manufactured in Sweden. Part (b) It is discovered that domestic businesses bought $4 billion less furniture than previously thought. This furniture was manufactured in Hong Kong.

In Hong Kong as in much of the world, National Income and GDP data are revised from time to time as new information about the economy comes in. What effects will the following revisions have on consumption, investment, government purchases, net exports, and GDP? Part (a) It is discovered that consumers bought $8 billion more furniture than previously thought. This furniture was manufactured in Sweden. Part (b) It is discovered that domestic businesses bought $4 billion less furniture than previously thought. This furniture was manufactured in Hong Kong.

Economics For Today

10th Edition

ISBN:9781337613040

Author:Tucker

Publisher:Tucker

Chapter19: The Keynesian Model In Action

Section: Chapter Questions

Problem 3SQ

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