If consumption is $11 trillion, investment is $2 trillion, government purchases are $3 trillion, exports are $2 trillion and imports are $3 trillion, calculate GDP. U
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If consumption is $11 trillion, investment is $2 trillion, government purchases are $3 trillion, exports are $2 trillion and imports are $3 trillion, calculate
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- Calculate the GDP of the country described below: Consumption = $5 trillionInvestments = $2 trillionGovernment Expenditures = $3 trillionNet Exports = $1 trillionIf we denote nominal GDP as Y and nominal gross output as Z, what formulas would you use to calculate real GDP and real gross output?< 2/2 Part B GDP: Where and what is counted? For each of the following items, write one of the following in the space provided. C if the item is counted as consumption spending I if the item is counted as investment spending ▶ G if the item is counted as government spending Xif the item is counted as exports M if the item is counted as imports NC if the item is not counted in the calculation of the GDP 11. You spend $7.00 to see the latest Justin Bieber movic. 12. A family pays a contractor $100,000 for a house he built for them this year. 13. A family pays $75,000 for a house built three years ago. 14. An accountant from Ernst & Young purchases a new Italian suit. 15. The government increases defense expenditures by $1,000,000,000 16. A homemaker works hard caring for her spouse and two children. 17. Ford Motor Company buys new auto-making robots. 18. Apple Computer builds a new factory in the United States. 19. You buy a new Toyota Tacoma that was made in Japan. 20. A Japanese…
- If consumption is $12 billion, investment is $5 billion, government purchases are $6 billion, exports are $3 billion, and imports are $5 billion, calculate GDP. (Do not include the dollar sign or billion in your answer. So, if your answer is $35 billion, just write in 35 )Suppose the data BELOW is for a given year from the annual Economic Report of the President. Calculate GDP using the expenditure approach (Amount in billions of dollars): Corporate profits: $ 305Depreciation: $ 479Gross private domestic investment: $716Personal taxes: $ 565Personal saving: $120Government spending: 924Imports: $ 547Exports: $ 427Personal consumption expenditures: $ 2,966Indirect business taxes: $ 370Contributions for Social Security (FICA): $ 394Transfer payments and other income: $ 967Q)The sum of expenditure by consumers is $32B, investment by businesses is $40B, and government expenditure is $28B. Exports are $10B and imports are$15B. Determine what approach will you use to find GDP and calculate it.
- If Mercedes builds cars in the United States, is their value counted in U.S. GNP? If General Motors builds cars in Germany, is their value counted in Germany's GDP? What is the mathematical relationship between GDP and GNP? Which component of GDP includes changes in private inventories? What is true of real and nominal GDP during the base year? What is one of the issues with the measurement of GDP?Using the formula GDP = C + I + G + NX, calculate GDP using the Expenditure Approach. (all figures are in billions of dollars):Item Measuring U.S. GDP: Using the information in the table below, calculate GDP via the expenditure approach. Expenditure Approach: Consumption expenditure Wages Investment Interest, Rent, Profits Government expenditure Exports Indirect Taxes less subsidies Depreciation Imports Dollars 15,400 8,500 2,100 4,100 3,200 3,000 1,100 2,000 8,000
- Although GDP is a reasonably good measure of a nation’s output, it is not an accurate measure of a nation’s well-being. Which of the following options are either not accounted for or are measured inaccurately in calculations of GDP for the United States? Check all that apply. A. The variety of goods available to consumersB. Funds spent by state governments to build highwaysC. The costs of overfishing and other overly intensive uses of resourcesD. The value of babysitting services, when the babysitter is paid in cash and the transaction isn’t reported to the governmentE. The parts of a car manufactured in the United States that are produced in CanadaWhich of the following is wrong? Select one: a. In the expenditures approach to GDP we subtract imports because they represent spending on production outside the borders of a country. b. Price indexes are computed by dividing the price of a specific collection or market basket of output in a particular period by the price of the same market basket in a base period and multiplying the result (the quotient) by 100. c. Exports are subtracted from imports in calculating GDP because exports are not available for domestic consumption. d. Gross private domestic investment exceeds depreciation in an economy that experiences expanding production capacity.After reading a report that says that around 70% of U.S. GDP is consumption, your friend Alex states, “ spending 70% of GDP on consumption is a lot. All people care about is buying stuff, consuming stuff, and accumulating stuff. We would be much better off if we spent our money on services or experiences”. Identify Alex’s misunderstanding of GDP.