# The Expenditures Approach – Gross versus Net Investment Exercise 2Suppose an economy starts the year

The Expenditures Approach – Gross versus Net Investment Exercise 2Suppose an economy starts the year with \$100 million in capital, and during the course of a year, it adds \$20 million of gross investment. Economists estimate that the depreciation rate for this economy is 9% per year.a. Calculate depreciation and net investment for this economy.Depreciation: \$ ________ millionNet investment: \$_______ millionb. Now calculate the amount of next year’s beginning capital stock for this economy.\$ _________ millionThe Expenditures Approach – Net Exports Exercise 2The table below shows nominal GDP, exports, and imports for the United States.YearNominal GDP(billions of dollars)Exports(billions of dollars)Imports(billions of dollars)2013\$17,078.3\$2,324.6\$2,787.52014 17,703.7 2,352.3 2,901.5Instructions: Round your answers to 1 decimal place. Include a negative sign if necessary.a. Calculate the value of net exports in 2013. \$ ________ billionb. Calculate the value of net exports in 2014. \$ ________ billion 