2. A particular country had consumption equal to 675, residential investment was 158, nonresidential investment was 344, there was no change in business inventory, government spending was 291, exports were 266 and imports were 308. What was GDP?
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- What are the main components of measuring GDP with what is demanded?What are typical GDP patterns for a high-income economy like the United States in the long run and the short run?1. Calculate GDP, NDP, NI, PI, and DI from the following information. All numbers are in billions of dollars. Wages $ 26,500Consumption Expenditures $30,000Government Expenditures $15,000Imports $18,000Exports $20,000Property Taxes $16,000Sales Taxes $9,715Retained earnings $1,310Personal Income Taxes $2,200Private Investment Expenditures $14,000Interest Income $1,940Pay Roll taxes $1,000Transfer Payments $800 Depreciation $1,200Net Income Made Abroad by Americans $160Indirect Business taxes $2,000Corporate Income Taxes $300 2. Calculate a) labor force, b) labor force participation rate, and c) unemployment rate if the population of a country is 240 million people out which 70 million are under the age of 16, 30 million don't want to work and 10 million are looking for work. 3. Calculate the inflation rate from 2019-2020 if the index number in 2019 was 115 and the index number in 2020 was 119.
- QUESTION 12 In the expenditure approach to GDP, which of the following is excluded from measurements of GDP? O A. Government payments for goods produced by privately-owned firms O B. Government payments for goods produced by firms owned by state or local govermments C. Government transfers to households because of Covid-19 O D. All government payments are included in GDP5. Which component of GDP includes spending on new structures and equipment?Production Year 2 50 120 Year 1 $1.00 $0.60 Year 2 $1.20 $0.60 Year 1 Good X 50 Year 3 60 Year 3 $1.20 $1.00 Good Y 100 140 1-Assume that this economy produces onlytwo goods Good X and Good Y. The value for this GDP in year 1 is 2-Assume that this economy produces only two goods Good X and Good Y. The value for this economy's nominal GDP in year 3 is 3-Assume that this economy produces only two goods Good.X and Good Y. The value for this economy's nominal GDP in year 2 is 4-Assume that this economy produces only two goods Good X and Good Y. If year 1 is the base year, the value for this economy's real GDP in year 2 is 5-Assume that this economy produces only two goods Good X and Good Y. If year 1 is the base year, the value for this economy's GDP deflator in year 1 is 6- Assume that this economy produces only two goods Good X'and Good Y If year 1 is the base year, the value for this economy deflator in year 2 is 7-Assume that this economy producesonlytwo goods Good Iand Good YIf year…
- 7) Assume that a tire company sells 4 tires to an automobile company for $400, anothercompany sells a compact disc player for $500, and the automobile company puts all of theseitems in or on a car that it sells for $20,000. In this case, how much GDP has been generated?a. $20,000.b. $20,000 less the automobile company’s profit on the car.c. $20,900.d. $20,900 less the profits of all three companies on the items that they sold.Question # 6 Based on the following data for a hypothetical economy Millions Wage and salaries Government Purchases Exports Rental Income Profit Interest Consumption and spending Imports Private investment Spending $6000 $2000 $2650 $450 $1600 $1000 $4800 $2400 $2000 a. Calculate the GDP using expenditure approach: b. Calculate the GDP using income approach: c. Suppose that in the next vear export deerease to 1650 million. Import increase to 3400 million and consumption falls to 2800 million. What will the GDP be in that year?Suppose that there are two individuals in an economy, Person 1 and Person 2. Person 1 buys asecond-hand car from Person 2 for $12,000.10. What is the change in GDP according to the Income Approach here? What is the changeof each person’s contribution to GDP according to the Income Approach? Suppose now instead that an individual was buying $400 of wine from a domestic producer ofwine. Now suppose that this individual decides to import $400 of wine instead.11. What is the change of Consumption (C), Investment (I), Government Spending (G), NetExports (NX), and GDP as calculated by the Expenditure Approach in this example?Finally, now consider the following table:Government Purchases of Goods andServices$58.5Indirect Taxes Less Subsidies $29Personal Income Taxes $41.5Wages and Compensation $165.5Interest on Public Debt $15.5Consumption Expenditure $168.4Exports $90.9Depreciation $33.5Imports $93.3Gross Investment $67.2Net Interest Income $19.0Business Profits Before Taxes $45.512. What is…
- 2. What happens to US gross domestic product (GDP) and its four main compo- nents when ... (a) A US household buys a new refrigerator, manufactured by a US firm? (b) Ford Motor Company (a US firm) produces a new car, which sits in a US auto dealer's lot instead of being sold to a US consumer? (c) Honda (a Japanese firm) expands one of its factories that is located in the US? 1 (d) Hallmark (a US firm) buys $1 million worth of paper from International Paper (another US firm) to make greeting cards? (e) You (a US resident) buy a used car? (f) The State of Massachusetts hires a new employee? (g) You (a US resident) spend $25 on a haircut?Aa9 How would you calculate GDP using the aggregate spending approach? a. By adding up wages, interest, rent and profit paid by all producers in the economy. b. By adding up the value added (obtained by deducting expenditure on intermediate inputs from total sales) across all firms in the economy. c. By adding up consumer expenditure, government expenditure, investment spending and net exports in the economy. "Net exports" is the value of imports deducted from the value of exports in the economy.Given the following data: Gross Investment Expenditure.. .$200 Government Transfer Payments...150 Business Transfer Payments... Capital Consumption. Consumer Exports... 50 100 iture Corporate Profit Before Tax.... 600 500 Receipts of Factor Income Payments ot Factor Income to from the Rest of the World 1,000 the Rest of the Horld.... 500 Calculate: (h) consumption
