Instructions: Enter your answers as a whole number.a. Using the above data, determine GDP by both the expenditures approach and the income approach. Then determine NDP.GDP using the expenditures approach = $ 398 billionGDP using the income approach = $ 398billionNDP = $ 371billionb. Now determine NI in two ways: first, by making the required additions or subtractions from NDP (method 1); and second, by addingup the types of income and taxes that make up NI (method 2).Method 1 = $367billionMethod 2 = $367billionc. Adjust NI (from part b) as required to obtain Pl.PI= $ 335 billiond. Adjust PI (from part c) as required to obtain Dl.DI = $ 327 billion

d. Adjust PI (from part c) to obtain DI Disposable Income (DI) is calculated by subtracting personal…

Answered: Instructions: Enter your answers as a…

Survey of Economics (MindTap Course List)

9th Edition

ISBN:9781305260948

Author:Irvin B. Tucker

Publisher:Irvin B. Tucker

Chapter11: Gross Domestic Product

Section: Chapter Questions

Problem 8SQP

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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: $ 967
Part A. The income and expenditure approaches to measuring a nation’s GDP can be combined using the circular flow model. Categorize each flow in the following table as part of either aggregate demand or national income. Part B. Fill in the blank with the choices in parentheses While national income and domestic product must be equal, income must also equal expenditure for each of the six sectors in the circular flow diagram: firms, consumers, government, financial system, investors, and the “rest of the world.” For example, the amount of __________(options for blank: disposable income, investment spending, saving, taxes) flowing into the financial system sector must equal the amount of ____________ (saving, consumption plus savings, transfers plus government purchases, investment spending) flowing out of this sector.
In order to find 2016 GDP in chained 2017 dollars, you would need to compute all but one of the following. Which is unnecessary? Hints: (1) start by writing an equation to show how 2016 GDP is related to 2017 GDP (in chained 2017 dollars). If you are not sure how to do this, go back to the lecture slides or to the reading "Numerical Example of Chain Weighting." (2) in the answers below, the phrase "in constant [year] dollars" refers to a fixed-weight calculation. a) current-dollar GDP in 2017 b) 2017 GDP in constant 2016 dollars c) 2016 GDP in constant 2015 dollars d) current-dollar GDP in 2016 e) 2016 GDP in constant 2017 dollars
MEASURING OUTPUT AND INCOME WORKSHEET This question examines the expenditures approach to calculating GDP. You will use data on different macroeconomic expenditures to calculate the value of nominal GDP, and its four components, in a particular year Below, you are provided data on macroeconomic expenditures last year in Asartaland: Durable Goods: $25 Gross Investment: $23 Nondurable Goods: $18 Exports: $11 Imports: Services: Depreciation: Government Purchases: $6 $20 $8 $35 Task 1: Calculate the value of consumption in the economy of Asartaland. (Durables + Nondurables + Services) Task 2: Calculate the value of net investment in the economy of Asartaland. (Gross Investment - Depreciation - Net Investment) Task 3: What is the value of government purchases in the economy of Asartaland? Task 4: Calculate the value of net exports in the economy of Asartaland. Task 5: Following the expenditures approach, calculate the value of GDP for Asartaland.
< 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…
Please give a detailed solution to the following problem below. Double-check your sources and work when answering the question to make sure the answer is correct.
GDP is often calculated using the expenditures approach, where you add up all spending in four categories: Consumption (C) + Business Investment (I) + Government Spending (G) + Net Exports (Xn). Based on the data you viewed, you can assume that due to the COVID-19 pandemic, the US GDP took the largest hit from which of the expenditure categories?  -Consumption   -Business Investment  Government -Spending   -Net Exports
This question has four parts. (its not a writing assignment, just asking for a numerical value or simple answer) 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? Go to the website for the Bureau of Economic Analyses (BEA): https://www.bea.gov/ Section 1: Domestic Product and Income; Table 1.1.5 1.2. Use the information in Table 1 to analyze aggregate expenditures (AE) model below (Figure 1. Equilibrium in a Private Closed Economy). (table 1 and figure 1 are in the attachments) 1.3. Identify the mistake and explain why the graph of the aggregate expenditures line does not correctly illustrate the economy's equilibrium. 1.4. Create a graph for the aggregate expenditures (AE) model using the data from Table 1: A Private Closed Economy. Tips: Remember, the 45degree line (also known as the Keynesian Cross) is a tool that shows how differences in aggregate…
Below is a hypothetical table such as would be generated by the Bureau of Labor Statistics when reporting historical and forecasted levels of gross domestic product for the United States. Use the answer table to fill in the blank for the missing estimates. Make sure you show your work. 1. 1998 Gross Domestic Product Answer (Remember to show work) 2 . 2028 Personal Consumption Expenditures Answer (remember to show your work) 3. 2008 Gross Private Domestic Investment answer (remember to show work) 4. 2018 Exports Answer (remember to show work)
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Consider the following NIPA Data $4,350 $662 $2,659 CHANGES IN PRIVATE INVENTORIES | -$290 $1,146 $8,640 $798 $2,335 $1,942 $405 $1,525 PCE-GOODS EXPORTS-SERVICES INVEST-NON-RESIDENTIAL EXPORTS-GGODS PCE-SERVICES INVEST-RESIDENTIAL GOV-STATE/LOCAL IMPORTS-GOODS IMPORTS-SERVICES GOV-FEDERAL A. WRITE THE GDP EQUATION (EXPENDITURES APPROACH). THEN USE THE DATA ABOVE TO ANSWER QUESTIONS B-F B. PCE=C3D C. GPDI=l-= D. GOV=G= E. NET EXPORTS=NX=, F. GDP= G. GNP= H. Compute the shares of each of the four components of GDP

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