Table 1.1: Total expenditure in Thalland, by category, 2014 Category of Spending us dollars (bilone) National Expenditure Household consumption 243 55.6 Capital goods 98 22.4 Government consumption 69 15.8 Exports 280 64.1 Imports 253 579 The latest figures show that Thailand's economy grew by 3.5% in the second quarter, putting it on track for 3-3.5% growth for the whole of 2016. Thailand has managed to boost its growth after several quarters of disappointing performance by increasing public sector investment in several large infrastructure projects, including roads, railways and airports. These projects will run over the next 3 to 5 years and are worth several hundred billion baht, Thailand's currency. It is hoped that this public sector investment will encourage the private sector to increase their investment spending. In addition to increased investment, the Thai economy's growth is being boosted by recovering private consumption due to increases in farm prices, which are crucial to household purchasing power, as well as a strong tourism sector. Re rding the export sector, which remains the biggest engine of growth, the outlook is still uncertain but the negative impact from China's economic slowdown appears to have stabilized with a Chinese growth rate of around 6.6% per annum. Refer to the source material before answering the question a. Calculate the level of aggregate demand in Thailand in 2014.
Table 1.1: Total expenditure in Thalland, by category, 2014 Category of Spending us dollars (bilone) National Expenditure Household consumption 243 55.6 Capital goods 98 22.4 Government consumption 69 15.8 Exports 280 64.1 Imports 253 579 The latest figures show that Thailand's economy grew by 3.5% in the second quarter, putting it on track for 3-3.5% growth for the whole of 2016. Thailand has managed to boost its growth after several quarters of disappointing performance by increasing public sector investment in several large infrastructure projects, including roads, railways and airports. These projects will run over the next 3 to 5 years and are worth several hundred billion baht, Thailand's currency. It is hoped that this public sector investment will encourage the private sector to increase their investment spending. In addition to increased investment, the Thai economy's growth is being boosted by recovering private consumption due to increases in farm prices, which are crucial to household purchasing power, as well as a strong tourism sector. Re rding the export sector, which remains the biggest engine of growth, the outlook is still uncertain but the negative impact from China's economic slowdown appears to have stabilized with a Chinese growth rate of around 6.6% per annum. Refer to the source material before answering the question a. Calculate the level of aggregate demand in Thailand in 2014.
Brief Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN:9781337091985
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter7: Production And Growth
Section: Chapter Questions
Problem 5CQQ
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Transcribed Image Text:Table 1.1: Total expenditure in Thalland, by category, 2014
Category of Spending
us dollars
(billone)
National
Expenditure
Household consumption
243
55.6
Capital goods
98
22.4
Govermment consumption
69
15.8
Exports
280
64.1
Imports
253
579
The latest figures show that Thailand's economy grew by 3.5% in the second quarter, putting it on track
for 3-3.5% growth for the whole of 2016. Thailand has managed to boost its growth after several
quarters of disappointing performance by increasing public sector investment in several large
infrastructure projects, including roads, railways and airports. These projects will run over the next 3 to 5
years and are worth several hundred billion baht, Thailand's currency. It is hoped that this public sector
investment will encourage the private sector to increase their investment spending.
In addition to increased investment, the Thai economy's growth is being boosted by recovering private
consumption due to increases in farm prices, which are crucial to household purchasing power, as well
as a strong tourism sector.
Regarding the export sector, which remains the biggest engine of growth, the outlook is still uncertain
but the negative impact from China's economic slowdown appears to have stabilized with a Chinese
growth rate of around 6.6% per annum.
Refer to the source material before answering the question
a. Calculate the level of aggregate demand in Thailand in 2014.
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