Imports Exports Consumer 80 billion 40 billion 185 billion semi-durables Profits 320 billion. Consumer services 600 billion 1. Calculate Consumption, Investment, Government spending 2. Explain the expenditure method of calculating the GDP. How this method is different from the income method of calculating the GDP? 3. Use suitable method to calculate GDP and show your work.
Imports Exports Consumer 80 billion 40 billion 185 billion semi-durables Profits 320 billion. Consumer services 600 billion 1. Calculate Consumption, Investment, Government spending 2. Explain the expenditure method of calculating the GDP. How this method is different from the income method of calculating the GDP? 3. Use suitable method to calculate GDP and show your work.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
![Jse the relevant information below:
Inventory investment.
$50 billion
120 billion
Fixed investment
Consumer durables
420 billion
275 billion
Consumer nondurables
Interest
140 billion
Indirect business taxes
45 billion
Government wages and salaries
300 billion
Government purchases of goods and
110 billion
services
Imports
80 billion
Exports
40 billion
Consumer semi-durables
185 billion
Profits
320 billion
Consumer services
600 billion
1. Calculate Consumption, Investment, Government spending
2. Explain the expenditure method of calculating the GDP. How this method is different from the income
method of calculating the GDP?
3. Use suitable method to calculate GDP and show your work.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ffc560e74-59bb-41a0-9719-edc567761fd1%2Fc86607a2-614c-45bf-be60-4a968d5f73c0%2F2an4hhj_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Jse the relevant information below:
Inventory investment.
$50 billion
120 billion
Fixed investment
Consumer durables
420 billion
275 billion
Consumer nondurables
Interest
140 billion
Indirect business taxes
45 billion
Government wages and salaries
300 billion
Government purchases of goods and
110 billion
services
Imports
80 billion
Exports
40 billion
Consumer semi-durables
185 billion
Profits
320 billion
Consumer services
600 billion
1. Calculate Consumption, Investment, Government spending
2. Explain the expenditure method of calculating the GDP. How this method is different from the income
method of calculating the GDP?
3. Use suitable method to calculate GDP and show your work.
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