Questions: You are given the data below for 2008 for the imaginary country of Amagre, whose currency is the G. - Consumption 350 billion G - Transfer payments 100 billion G - Investment 100 billion G - Government purchases 200 billion G - Exports 50 billion G - Imports 150 billion G - Bond purchases 200 billion G - Earnings on foreign investments 75 billion G - Foreign earnings on Amagre investment 25 billion G 1. Compute net foreign investment. 2. Compute net exports. 3. Compute GDP. 4. Compute GNP. In addition to responding with a quantitative answer, briefly describe how you arrived at your answers.

To solve the given questions, we need to apply the relevant economic formulas for net foreign investment, net exports, GDP, and GNP.

1. Compute Net Foreign Investment:

   Net foreign investment is calculated as the difference between earnings on foreign investments and foreign earnings on domestic investments.

   \[ \text{Net Foreign Investment} = \text{Earnings on Foreign Investments} - \text{Foreign Earnings on Domestic Investments} \]

   \[ \text{Net Foreign Investment} = 75 \, \text{billion G} - 25 \, \text{billion G} = 50 \, \text{billion G} \]

2. Compute Net Exports:

   Net exports are calculated as the difference between exports and imports.

   \[ \text{Net Exports} = \text{Exports} - \text{Imports} \]

   \[ \text{Net Exports} = 50 \, \text{billion G} - 150 \, \text{billion G} = -100 \, \text{billion G} \]

3. Compute GDP:

   GDP (Gross Domestic Product) is calculated using the expenditure approach, which sums consumption, investment, government purchases, and net exports.

   \[ \text{GDP} = \text{Consumption} + \text{Investment} + \text{Government Purchases} + \text{Net Exports} \]

   \[ \text{GDP} = 350 \, \text{billion G} + 100 \, \text{billion G} + 200 \, \text{billion G} + (-100 \, \text{billion G}) = 550 \, \text{billion G} \]

In summary:

1. Net Foreign Investment is 50 billion G.
2. Net Exports are -100 billion G.
3. GDP is 550 billion G.