In the national income and product accounts system, the two main approaches to measuring the size of the economy are: income and expenditures. imports and exports. production and consumption. government and private.
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The table gives some data about the U.K. economy: $$\begin{array}{lc} & \text { Billions of } \\\text { Item } & \text { U.K. pounds } \\\hline \text { Consumption expenditure } & 721 \\\text { Exports of goods and services } & 277 \\\text { Government expenditures } & 230 \\\text { Net taxes } & 217 \\\text { Investment } & 181 \\ \text { Saving } & 162\end{array}$$ What is the relationship between the government sector balance and net exports?
$$\begin{array}{lr} \text { Item } & \text { Billions of dollars } \\ \hline \text { Wages } & 8,000 \\ \text { Consumption expenditure } & 10,000 \\ \text { Other factor incomes } & 3,400 \\ \text { Investment } & 1,500 \\ \text { Government expenditure } & 2,900 \\ \text { Net exports } & -340 \end{array}$$ Explain the approach (expenditure or income) that you used to calculate GDP.
The table gives some data about the U.K. economy: $$\begin{array}{lc} & \text { Billions of } \\\text { Item } & \text { U.K. pounds } \\\hline \text { Consumption expenditure } & 721 \\\text { Exports of goods and services } & 277 \\\text { Government expenditures } & 230 \\\text { Net taxes } & 217 \\\text { Investment } & 181 \\ \text { Saving } & 162\end{array}$$ Calculate the private sector and government sector balances.
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