You are given the following information about an​ economy:
Gross private domestic investment​ = 40
Government purchases of goods and services​ = 30 
Gross national product​ (GNP) = 215
Current account balance​ = negative 30
Taxes​ = 50
Government transfer payments to the domestic private sector​ = 25
Interest payments from the government to the domestic private sector​ = 10 
​(Assume all interest payments by the government go to domestic​ households.)
Factor income received from rest of world​ = 5 
Factor payments made to rest of world​ = 7
Find the​ following, assuming that government investment is zero.
Part 2
Net factor payments from abroad​ = 
  
negative 2. ​(Enter your answer as a whole number​.)
Part 3
GDP​ = 
  
217. ​(Enter your answer as a whole number​.)
Part 4
Net exports​ = 
  
enter your response here. ​(Enter your answer as a whole number​.)

Let's go step by step to solve the problem.

### Part 2: Net Factor Payments from Abroad
Net factor payments from abroad = Factor income received from the rest of the world - Factor payments made to the rest of the world

\[
\text{Net factor payments from abroad} = 5 - 7 = -2
\]

This is already given in the problem.

### Part 3: Gross Domestic Product (GDP)

Gross National Product (GNP) is related to GDP as follows:

\[
\text{GNP} = \text{GDP} + \text{Net factor payments from abroad}
\]

We are given that:

\[
\text{GNP} = 215 \quad \text{and} \quad \text{Net factor payments from abroad} = -2
\]

Using the equation:

\[
\text{GDP} = \text{GNP} - \text{Net factor payments from abroad} = 215 - (-2) = 215 + 2 = 217
\]

This is also already provided.

### Part 4: Net Exports

Net exports are related to the current account balance as follows:

\[
\text{Net exports} = \text{Current account balance}
\]

The current account balance is given as -30. Therefore:

\[
\text{Net exports} = -30
\]

### Final Answers:
- Part 2: Net factor payments from abroad = -2
- Part 3: GDP = 217
- Part 4: Net exports = -30

Would you like further clarification on any part of the calculation? Here are 5 related questions to expand on the concept:

1. How does GDP differ from GNP, and why are net factor payments from abroad important in calculating both?
2. What is the significance of the current account balance in an economy?
3. Can a country have a negative net export and still have a growing economy?
4. How do government purchases and gross private domestic investment affect GDP?
5. What role do transfer payments and interest payments play in the economy?

### Tip:
Always remember that GNP includes income from abroad (net factor payments), while GDP focuses strictly on domestic production.

You are given the following information about an​ economy: Gross private domestic investment​ = 40, Government purchases of goods and services​ = 30, Gross national product​ (GNP) = 215, Current account balance​ = negative 30, Taxes​ = 50, Government transfer payments to the domestic private sector​ = 25, Interest payments from the government to the domestic private sector​ = 10, Factor income received from rest of world​ = 5, Factor payments made to rest of world​ = 7. Find the following, assuming that government investment is zero. Part 2: Net factor payments from abroad, Part 3: GDP, Part 4: Net exports.

Learn how to calculate GDP, net factor payments from abroad, and net exports using national income accounting data. This example uses real-world economic data such as GNP, current account balance, and government purchases. Suitable for undergraduate economics students.

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