Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
![The table below shows the values for several different components of GDP.
Billions of
Category
Dollars
Personal consumption expenditures
Net foreign factor income
$266
Transfer payments
15
Rents
12
Consumption of fixed capital (depreciation)
Statistical discrepancy
23
8
Social Security contributions
20
Interest
10
Proprietor's income
Net exports
23
12
Dividends
16
Compensation of employees
263
Taxes on production and imports
Undistributed corporate profits
11
Personal taxes
16
Corporate income taxes
Corporate profits
Government purchases
Net private domestic investment
Personal saving
9
46
61
26
10
Imports
5
Instructions: Enter your answers as whole number.
a. What is the value of exports?
$
billion
b. What is the value of national income?
$
|billion
c. What is the GDP?
2$
billion
d. What is the value of personal income?
billion
%24](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F34ce7bed-400d-4adc-b96c-f91c28d9ab16%2Fc856cf60-ec50-43f1-a377-ce81b2a7f771%2Fyszwutk_processed.png&w=3840&q=75)
Transcribed Image Text:The table below shows the values for several different components of GDP.
Billions of
Category
Dollars
Personal consumption expenditures
Net foreign factor income
$266
Transfer payments
15
Rents
12
Consumption of fixed capital (depreciation)
Statistical discrepancy
23
8
Social Security contributions
20
Interest
10
Proprietor's income
Net exports
23
12
Dividends
16
Compensation of employees
263
Taxes on production and imports
Undistributed corporate profits
11
Personal taxes
16
Corporate income taxes
Corporate profits
Government purchases
Net private domestic investment
Personal saving
9
46
61
26
10
Imports
5
Instructions: Enter your answers as whole number.
a. What is the value of exports?
$
billion
b. What is the value of national income?
$
|billion
c. What is the GDP?
2$
billion
d. What is the value of personal income?
billion
%24
![The following table shows nominal GDP and an appropriate price index for a group of selected years. Compute real GDP. Indicate in
each calculation whether you are inflating or deflating the nominal GDP data.
Instructions: Enter your responses in the gray-shaded cells. Round your answers to 2 decimal places.
Nominal GDP,
Billions
Price Index
Year
Real GDP, Billions
Effect on Nominal GDP
(2005 = 100)
1978
$2,308.80
40.4
1988
5,115.40
66.98
1998
8,808.50
85.51
2008
14,456.40
108.48
2018
20,519.30
128.59](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F34ce7bed-400d-4adc-b96c-f91c28d9ab16%2Fc856cf60-ec50-43f1-a377-ce81b2a7f771%2F3pmjwxt_processed.png&w=3840&q=75)
Transcribed Image Text:The following table shows nominal GDP and an appropriate price index for a group of selected years. Compute real GDP. Indicate in
each calculation whether you are inflating or deflating the nominal GDP data.
Instructions: Enter your responses in the gray-shaded cells. Round your answers to 2 decimal places.
Nominal GDP,
Billions
Price Index
Year
Real GDP, Billions
Effect on Nominal GDP
(2005 = 100)
1978
$2,308.80
40.4
1988
5,115.40
66.98
1998
8,808.50
85.51
2008
14,456.40
108.48
2018
20,519.30
128.59
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
Step 1
Since you have asked multiple questions, we will solve the first question for you. If you want any specific question to be solved then specify the question number or post only that question.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
![ENGR.ECONOMIC ANALYSIS](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9780190931919/9780190931919_smallCoverImage.gif)
![Principles of Economics (12th Edition)](https://www.bartleby.com/isbn_cover_images/9780134078779/9780134078779_smallCoverImage.gif)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
![Engineering Economy (17th Edition)](https://www.bartleby.com/isbn_cover_images/9780134870069/9780134870069_smallCoverImage.gif)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
![ENGR.ECONOMIC ANALYSIS](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9780190931919/9780190931919_smallCoverImage.gif)
![Principles of Economics (12th Edition)](https://www.bartleby.com/isbn_cover_images/9780134078779/9780134078779_smallCoverImage.gif)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
![Engineering Economy (17th Edition)](https://www.bartleby.com/isbn_cover_images/9780134870069/9780134870069_smallCoverImage.gif)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
![Principles of Economics (MindTap Course List)](https://www.bartleby.com/isbn_cover_images/9781305585126/9781305585126_smallCoverImage.gif)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
![Managerial Economics: A Problem Solving Approach](https://www.bartleby.com/isbn_cover_images/9781337106665/9781337106665_smallCoverImage.gif)
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
![Managerial Economics & Business Strategy (Mcgraw-…](https://www.bartleby.com/isbn_cover_images/9781259290619/9781259290619_smallCoverImage.gif)
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education