To find the value for gross private domestic investment, we'll sum up all the components of private domestic investment given in Table 6.2.
The components provided in the table are:
1. Residential Investment: \[tex]$400 billion
2. Nonresidential Investment: \$[/tex]600 billion
3. Change in Business Inventories: \[tex]$20 billion
Let's proceed step-by-step:
1. Start with the Residential Investment:
\[
\text{Residential Investment} = 400 \, \text{\$[/tex] billion}
\]
2. Add the Nonresidential Investment:
[tex]\[
\text{Nonresidential Investment} = 600 \, \text{\$ billion}
\][/tex]
3. Finally, add the Change in Business Inventories:
[tex]\[
\text{Change in Business Inventories} = 20 \, \text{\$ billion}
\][/tex]
Now, sum these values together:
[tex]\[
\text{Gross Private Domestic Investment} = \text{Residential Investment} + \text{Nonresidential Investment} + \text{Change in Business Inventories}
\][/tex]
Substitute the values:
[tex]\[
\text{Gross Private Domestic Investment} = 400 + 600 + 20
\][/tex]
[tex]\[
\text{Gross Private Domestic Investment} = 1020 \, \text{\$ billion}
\][/tex]
Thus, the value for gross private domestic investment in billions of dollars is:
[tex]\[
1020
\][/tex]
