Question 1 An economy producers 1,000,000 automobiles valued at $15,000 each.Of these, 700,000 are sold to consumers, 200,000 are sold to business, 50,000 are to the government and 25,000 are sold abroad.No automobiles are imported. The automobiles left unsold will be held in inventory by the auto procedures. Compute 1) The total consumption 2) The total investment 3) 3) the total government purchases 4) The total net exports 5) The gross domestics products (GDP) at market value

Question 1 An economy producers 1,000,000 automobiles valued at $15,000 each.Of these, 700,000 are sold to consumers, 200,000 are sold to business, 50,000 are to the government and 25,000 are sold abroad.No automobiles are imported. The automobiles left unsold will be held in inventory by the auto procedures. Compute 1) The total consumption 2) The total investment 3) 3) the total government purchases 4) The total net exports 5) The gross domestics products (GDP) at market value

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter22: Inflation

Section: Chapter Questions

Problem 18RQ: What is deflation?

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Step 1: Define GDP components

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Step 2: Compute total consumption (C)

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Step 3: Calculate total investment (I)

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Step 4: Calculate government purchase (G)

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Step 5: Calculate total net export (NX)

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Step 6: Calculate GDP at market value

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