Measuring Macroeconomic Activity III (Saving and Wealth)

Question 1

Private Savings

Answer 1

S (private) = Y + BPI + BSI - T + GT - C
[ GNI ] ] ]
[ GNDI ] ]
[ Private GND ]

Question 2

Government Savings

Answer 2

S (governmental) = T - GT - G

[ net Government Income ]

Question 3

National Savings

Answer 3

S = S (private) + S ( governmental)

S = (Y + BPI + BSI - T + GT - C) + (T - GT - G)
S = Y + BPI + BSI - C - G

S = I + TB + BPI + BSI
[ CA ]

Question 4

NIIP

Answer 4

net international investment position (wealth abroad)

FOA - FOL

Question 5

National Wealth

Answer 5

National Wealth = K + FOA - FOL

[ NIIP ]

Question 6

K

Answer 6

Economy’s Capital stock

Domestic wealth (domestic non-financial assets)

Question 7

Changes in K

Answer 7

K (T) = K (t) - ∂ x K (t) + I (t)

those occure through depreciation