a. Suppose nominal GDP of a small economy in 2012 was $43 billion, the nominal GDP in 2018 was $96 billion, and the 2012 and 2018 consumer price indexes were 100 and 180, respectively. Therefore, between 2012 and 2018 the real GDP (in 2012 prices) increased by --- Show how you have derived your answer. b. The value of MPC in an economy is 0.76. The economy's investment expenditure (I) drops from $580 billion to $415 billion. As a result, the economy's aggregate income (Y) will change by $____ you have found your answer. percent. Show how

a. Suppose nominal GDP of a small economy in 2012 was $43 billion, the nominal GDP in 2018 was $96 billion, and the 2012 and 2018 consumer price indexes were 100 and 180, respectively. Therefore, between 2012 and 2018 the real GDP (in 2012 prices) increased by --- Show how you have derived your answer. b. The value of MPC in an economy is 0.76. The economy's investment expenditure (I) drops from $580 billion to $415 billion. As a result, the economy's aggregate income (Y) will change by $____ you have found your answer. percent. Show how

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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am. 209.
Refer to the data for 2019 below to answer the following questions: The Equivalence of Expenditure and Income (in Billions of Dollars) Expenditure C: Consumer goods and services 1: Investment in plants, equipment, and inventory G: Government goods and services X: Exports M: Imports GDP: Total value of output % b. Corporate profits? $14,561 % 3,744 3,754 2,504 Wages and salaries Corporate profits Proprietors' income Instructions: Enter your responses as a percentage rounded to one decimal place. What share of U.S. total income in 2019 consisted of a. Wages and salaries? Income Rents Interest Taxes on output and imports Depreciation Statistical discrepancy (3,136) $21,427 = Total value of income $11,434 2,075 1,658 778 645 1,494 3,463 (120) $21,427
Which of the following is true about the components of GDP? When we buy stocks, this is economic investment. Net exports must always be a negative number. Government purchases make up the largest part of GDP. A refrigerator is a durable consumption good.
1. Calculate the values for the blanks in the shaded areas of the table below (identify your responses in a logical fashion in your document): Expenditure Components of GDP by Country, 2018 (billions of US dollars) Denmark Finland Australia Canada India Japan New Zealand UK US Consumption 808.7 996.9 165.9 146.1 1650.6 2763.3 120.0 1870.5 13998.7 Investment Business fixed investment 336.9 385.1 78.8 65.6 842.7 1202.5 49.1 487.3 4260.7 Changes in inventories 0.1 9.4 2.9 3.4 27.4 11.2 0.1 5.8 54.7 Government 275.5 357.1 86.6 62.7 312.1 981.6 38.4 528.3 2904.3 Net Exports Exports Imports 348.5 544.9 197.9 106.8 548.6 917.1 58.2 856.8 2510.2 312.0 581.1 176.4 108.8 657.0 904.4 58.1 907.1 3148.5 GDP Source: UNData, UN Statistics Division, data.un.org, GDP by Type of Expenditure at current prices – US dollars 2. Based on the information in the table and your calculations for Question #1: Do any countries have positive net exports? Which one(s)? Which country has the largest negative net…
In 2022, Tom spent $70,000 renovating his house. In the same year, he sold his house to a couple from Bacchus Marsh for $850,000. As part of the sale, Tom paid $17,000 for real estate agent fee, $8,000 for advertising fee and $95,000 for capital gain tax. Considering all of the above numbers, how much would GDP in 2022 increase by? A) $850,000, which is how much Tom sold the house for B) $95,000 C) $190,000 D) $0, GDP would be unchanged because the sale of this already established house is considered the sale of a second-hand good.
choose the correct answer:
Aaron Platter Well, that's the strange thing. I've got total GDP at $7,200, as I said, and consumption expenditure at $3,000. I've also got economic investment expenditure totaling $1,800 and government purchases of $1,450...
2. Consumption spending is $3.708 trillion, spending on nondurable goods is $1.215 trillion, and spending on services is $2.041 trillion. What does spending on durable goods equal? 3. Inventory investment is $62 billion and total investment is $1.122 trillion. What does fixed investment equal?