### Components of GDP (2020)The table below details the components of the Gross Domestic Product (GDP) for the year 2020, as compiled by the Bureau of Economic Analysis:#### Category Breakdown (in billions of current dollars)**Consumer Spending:**- Durable goods: $1,616.4- Nondurable goods: $3,037.4- Services: $9,393.7**Private Investment Spending:**- Fixed investment spending: $3,697.4 - Nonresidential: $2,799.6 - Structures: $597.2 - Equipment: $1,123.9 - Intellectual Property Products: $1,078.5 - Residential: $897.8- Change in private inventories: -$59.6**Net Exports:**- Exports: $2,123.4- Imports: $2,774.6**Government Purchases of Goods and Services and Investment Spending:**- Federal: $1,501.8 - National defense: $881.3 - Nondefense: $620.5- State and local: $2,357.8### Calculations Requireda. **Calculate Consumer Spending.**b. **Calculate Private Investment Spending.**c. **Calculate Net Exports.**d. **Calculate Government Purchases of Goods and Services and Investment Spending.**e. **Calculate Gross Domestic Product.**> Use the data provided in the table to perform the calculations and understand the various components contributing to the GDP.

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* The components of GDP (2020) in the accompanying table were produced by the Bureau of Economic Analysis. (15) Category Consumer spending Durable goods Nondurable goods Services Private investment spending Fixed investment spending Nonresidential Structures Equipment Intellectual Property Products Residential Change in private inventories Net exports Exports Imports Government purchases of goods and services and investment spending Federal National defense Nondefense State and local a. Calculate consumer spending. (billions of current dollars) $1,616.4 3,037.4 9,393.7 3,697.4 2,799.6 597.2 1,123.9 1,078.5 897.8 -59.6 2,123.4 2,774.6 1,501.8 881.3 620.5 2,357.8 b. Calculate private investment spending. c. Calculate net exports.

* The components of GDP (2020) in the accompanying table were produced by the Bureau of Economic Analysis. (15) Category Consumer spending Durable goods Nondurable goods Services Private investment spending Fixed investment spending Nonresidential Structures Equipment Intellectual Property Products Residential Change in private inventories Net exports Exports Imports Government purchases of goods and services and investment spending Federal National defense Nondefense State and local a. Calculate consumer spending. (billions of current dollars) $1,616.4 3,037.4 9,393.7 3,697.4 2,799.6 597.2 1,123.9 1,078.5 897.8 -59.6 2,123.4 2,774.6 1,501.8 881.3 620.5 2,357.8 b. Calculate private investment spending. c. Calculate net exports.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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