To solve for Personal Consumption Expenditure in this problem, we can use the formula for GDP (Gross Domestic Product):

$\text{GDP} = \text{Personal Consumption Expenditure} + \text{Government Consumption and Gross Investment} + \text{Net Exports} + \text{Net Investment}$

Where:

• GDP is given as 1270 billion.
• Government Consumption and Gross Investment is 330 billion.
• Net Exports is calculated as $\text{Exports} - \text{Imports} = 150 - 180 = -30$ billion.
• Net Investment is 160 billion.

Let's now rearrange the formula to solve for Personal Consumption Expenditure:

$\text{Personal Consumption Expenditure} = \text{GDP} - \left( \text{Government Consumption and Gross Investment} + \text{Net Exports} + \text{Net Investment} \right)$

Substituting the values:

$\text{Personal Consumption Expenditure} = 1270 - \left( 330 + (-30) + 160 \right)$ $\text{Personal Consumption Expenditure} = 1270 - (330 - 30 + 160)$ $\text{Personal Consumption Expenditure} = 1270 - 460$ $\text{Personal Consumption Expenditure} = 810 \, \text{billion}$

So, Personal Consumption Expenditure equals 810 billion.

Let me know if you would like more details or have any other questions!

Here are 5 questions related to this:

1. How is the difference between GDP and GNP calculated?
2. What factors contribute to the depreciation in national accounts?
3. Why is it important to account for statistical discrepancies in national income?
4. How does the balance of imports and exports affect GDP?
5. What is the significance of inventory adjustments in calculating net investment?

Tip: Always keep track of the relationship between GDP, GNP, and NNP to understand the overall economic performance of a country.