5. Comparing total expenditures and total productionThe following graph shows total production (TP) and total expenditures (TE) for a hypothetical economy. Suppose Real GDP is $450 billion.TOTAL EXPENDITURE (Bons of dollars)475450425400325350325300300325350 375 400 425REAL GOP (Bons of dollars)450 475500(TP-Real GOP)TE 500425400X375350350375 400 425 450 475 500TOTAL EXPENDITURE (Billions of dollars)475450325300300325REAL GDP (Bons of dollars)If Real GDP is $450 billion, inventories(TP- Real GDP)TE, the firms iproduction, and Real GDP

Gross domestic product is the summation of a country's final goods and services. A rise in GDP means…

8. Comparing total expenditures and total production The following graph shows total production (TP) and total expenditures (TE) for a hypothetical economy. Suppose Real GDP is $450 billion. TOTAL EXPENDITURE (Bons of dollars) 500 475 X 37 400 425 REAL GOP (ons of dollars) 450 425 400 375 350 321 300 300 (TP-Real GOP) 325 350 TE 450 475 500

8. Comparing total expenditures and total production The following graph shows total production (TP) and total expenditures (TE) for a hypothetical economy. Suppose Real GDP is $450 billion. TOTAL EXPENDITURE (Bons of dollars) 500 475 X 37 400 425 REAL GOP (ons of dollars) 450 425 400 375 350 321 300 300 (TP-Real GOP) 325 350 TE 450 475 500

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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2. The table below includes information about real GDP (measured in billions of 1987 dollars) for Wonderland in 1993 and 1994. TH Consumption (C) 1993 3459 1994 3579 Fixed Investment (I) 805 i 903 Nonresidential 592 672 Residential 213- 231 Government spending (G) 930 923 Exports (X) 603 655 Imports (Q) 676 769 Inventory Investment (Is) 15 52 nee (a) Calculate the levels of real GDP for 1993 and 1994. Then calculate the rate of GDP growth between 1993 and 1994. (b) Based on your calculations, briefly explain what happened to economic activity between 1993 and 1994. (c) Calculate the rate of growth/decline in each of the components of GDP between 1993 and 1994. Which of the components of GDP grew the fastest and slowest between those two years? (d) Based on the information in these two tables, what happened, if anything, to the size of the trade deficit between these two years? If the deficit did change, did it occur primarily because of changes in exports or imports?
economics
Question #1 What does GDP attempt to measure? Briefly differentiate between nominal and real GDP. Why is real GDP a more accurate measure of economic growth compared to nominal GDP? 3) What are two weaknesses of GDP? Question # 02 Use the information given and show in a table format how value added method is used to Calculate GDP. A forester chops down 200 trees and sells them @ N$50 each to the coal factory on a farm. The coal factory processes these trees into coals and sells the coal @ N$20 000 to the coal wholesaler’s. The coal wholesaler’s goes to the market and sell 500 bags of coal’s @N$100 each to pick n Pay. Pick n Pay sells the 500 bags of coal’s @ N$150 each to its customers. According to this example, how much value added do the coals contribute to the GDP? Question#3 1. Pick a recent news 5 from a major newspaper that contains content amenable to macro-economic analysis. 2. In the first short paragraph you might outline the main points from the article…
Marginal cost is the one more unit of a good and opportunity cost of producing increases as production O price that must be paid to consume; decreases as consumption O opportunity cost of producing: decreases as production O price that must be paid to consume; increases as consumption of the good increases.
14
The following provides data for an economy in a certain year. Consumption expenditures Imports Government purchases of goods and services $700 $1,000 $600 Construction of new homes and apartments $500 $600 $500 $300 $600 Sales of existing homes and apartments Exports Government transfer payments Household purchases of services Beginning-of-year inventory End-of-year inventory $500 $600 $300 Business fixed investment a.) How much did households spend on goods (durable and nondurable) during this year? [ Select ] b.) Compute the investment component (I) of GDP. [Select ] c.) After consumption, which sector of the economy contributed the most to GDP? [ Select ] d.) Does this economy have a trade deficit or a trade surplus? [ Select ] e.) What is the GDP for this economy? [ Select ] f.) What method are we using here to compute GDP? [ Select ]
4 The components of GDP (2020) in the accompanying table were produced by the Bureau of Economic Analysis. (15) Category Consumer spending Durable goods Nondurable goods Services Private investment spending Fixed investment spending Nonresidential Structures Equipment Intellectual Property Products Residential Change in private inventories Net exports Exports Imports Government purchases of goods and services and investment spending Federal National defense Nondefense State and local a. Calculate consumer spending. (billions of current dollars). $1,616.4 3,037.4 9,393.7 _3,697.4 2,799.6 _597.2 1,123.9 1,078.5 897.8 -59.6 2,123.4 2,774.6 1,501.8 881.3 620.5 2,357.8 b. Calculate private investment spending. c. Calculate net exports. d. Calculate government purchases of goods and services and investment spend e. Calculate gross domestic product
TOPIC: Comparing total expenditures and total production
1.1. What is the US GDP for the first quarter and second quarter of 2020? What is the personal consumption expenditures for the first quarter and second quarter of 2020?
2. Activities included (and not included) in the calculation of GDP The gross domestic product (GDP) of the United States is defined as the all in a given period of time. Based on this definition, indicate which of the following transactions will be included in (that is, directly increase) the GDP of the United States in 2020. 2020 GDP Included Excluded Scenario An accountant starts a client's 2020 tax return on April 14, 2021, finishing it just before midnight on April 15, 2021. Treetopplers, a U.S. lumber company, produces wood at a plant in Oregon on September 25, 2020. It sells the wood to Buildit and Partners, a developer, for use in the production of a new house that will be built in the United States in 2020. (Note: Focus exclusively on whether production of the wood increases GDP directly, and ignore the effect of production of the new house on GDP.) Fastlane, a Japanese automobile company, produces a sedan at a plant in Indiana on December 14, 2020. A family buys the sedan on…
am. 20.
5. Given the following income data, please answer the questions below. Real GDP Consumption Ig Government Exports $5000 $12000 $7000 $7000 $5000 $12000 $5000 $12000 $5000 $12000 $7000 $7000 $5000 $12000 $7000 $100000 $116000 $140000 $148000 $180000 $180000 $220000 $212000 $260000 $244000 Imports $16000 $16000 $16000 $16000 $16000 a. Solve for net exports in each row. b. Solve for aggregate expenditures (AE) in each row. c. State the value for the equilibrium GDP. d. If imports were to increase by $16000 so they are now equal to $32000, solve for net exports again. e. With this new export value, solve for aggregate expenditures in each row. f. State the value for the new equilibrium GDP. g. Solve for the multiplier (you can solve for either the actual or simple multiplier).