A) Does this economy have a trade deficit or a trade surplus?B) What is the GDP for this economy?C) What method are we using here to compute GDP? (Income, production or expenditure) **Economic Data Overview for a Certain Year**- **Consumption Expenditures**: $1,000- **Imports**: $600- **Government Purchases of Goods and Services**: $700- **Construction of New Homes and Apartments**: $500- **Sales of Existing Homes and Apartments**: $600- **Exports**: $500- **Government Transfer Payments**: $300- **Household Purchases of Services**: $600- **Beginning-of-Year Inventory**: $500- **End-of-Year Inventory**: $600- **Business Fixed Investment**: $300This table presents various economic indicators for a particular year, including consumption expenditures, imports, exports, government spending, and various components of investment. These figures are critical for analyzing the economic performance and trends within that period.

a) Trade Deficit:- The term "trade deficit" refers to the scenario where the import of a nation is…

The following provides data for an economy in a certain year Consumption expenditures $1,000 $600 Government purchases of goods and services $700 Imports Construction of new homes and apartments $500 Sales of existing homes and apartments Exports Government transfer payments $600 $500 $300 Household purchases of services Beginning-of-year inventory End-of-year inventory $600 $500 $600 Business fixed investment $300

The following provides data for an economy in a certain year Consumption expenditures $1,000 $600 Government purchases of goods and services $700 Imports Construction of new homes and apartments $500 Sales of existing homes and apartments Exports Government transfer payments $600 $500 $300 Household purchases of services Beginning-of-year inventory End-of-year inventory $600 $500 $600 Business fixed investment $300

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question 34 If Volkswagen (a German-based firm) produces a car in Tennessee and exports it to Mexico, in which country's GDP will the car be counted? Germany's, because Volkswagen is a German company Mexico, because that is where the car is purchased O The United States, because that's where it was built O Both Mexico and the United States
United Kingdom Kenya Price per Value of Value of unit (GBP) output Оuаntity Price per Quantity unit (KSh) output (GBP) (KSh) 5000 per 75 650,000 Equipment (millions of 500 unit units) Food 500 10 per kg 125 750 (millions of kg) Total GDP (local currency) a. If equipment is fully tradable, so that the price in Kenyan shillings (KSh) equals the price in pounds times the market exchange rate, what is the market exchange rate? b. Based on its relative price, does it appear that food is tradable? Is it more or less expensive in Kenya, compared to the UK? c. Fill in the table above (ignoring cells with "-"). What is the UK's total GDP in GBP? What is Kenya's total GDP in KSh? d. What is Kenya's GDP in GBP at market exchange rates? e. Following the calculations on pp 28-29 of ED, what is Kenya's GDP in pounds calculated by using UK prices for each individual product and applying that price to Kenya's quantities (that is, using purchasing power parity [PPP])? f. Is the value you calculated in…
6. Limitations of GDP Although GDP is a reasonably good measure of a nation's output, it does not necessarily include all transactions and production for that nation. Which of the following scenarios are either not accounted for or measured inaccurately by either the income or the expenditure methods of calculating GDP for the United States? Check all that apply. The quality of goods available to consumers The loss of enjoyment people incur when scenic land is converted to commercial use Federal government paychecks to soldiers The import and sale of illegal drugs from South America When a U.S. company purchases and imports electronic parts from China to use to produce smartphones within the United States, this purchase increases the component of GDP while also increasing net exports by the same amount. Therefore, the in US GDP. investment purchase of electronic parts from China causes no overall change
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4. Measuring GDP The following table shows data on consumption, investments, exports, imports, and government expenditures for the United States in 2017, as published by the Bureau of Economic Analysis. All figures are in billions of dollars. Fill in the missing cells in the table to calculate GDP using the expenditure approach. Data (Billions of dollars) Consumption (C) 13,321.4 Investment (I) 3,368.0 Exports (X) 2,350.2 Imports (M) 2,928.6 Net Exports of Goods and Services Government Purchases (G) 3,374.4 Gross Domestic Product (GDP)
(Table) Suppose a loaf of bread goes through the following stages of production, with the values noted at the end of each stage. Stage 1. Farmer's wheat 2. Miller's flour Value $0.65 $1.20 $1.80 $2.65 3. Baker's bread 4. Grocer's bread The sale of one loaf of bread adds to GDP. $6.30 $2.65 $5.65 $4.45
(Expenditure approach to GDP). You have the following annual information about a hypothetical economy (all figures are in billion dollars) Personal taxes 25 Exports 20 Depreciation 15 Personal consumption 100 Government transfer payment 30 Government purchases 55 Gross private Domestic Investment 50 Imports 40 WHAT IS THE VALUE OF GDP? WHAT IS THE VALUE OF NET EXPORTS? WHAT IS THE VALUE OF NET DOMESTIC INVESTMENT?
Question: What is the aggregate of the gross balances of primary income of all resident institutional units knows as?[A] Gross domestic Product[B] Gross national product[C] Gross National income[D] Net national productPlease Don't use chatgpt or other ai tool.
1. Calculate GDP using the expenditures approach for year 1 and year 2. Explain your rationale with numbers. In other words, you must show the following; ▪ What is Personal Consumption Expenditures in year 1 and 2 ▪ What is Gross Private Domestic Investment in year 1 and 2 ▪ What is Government Purchases of Goods and Services in year 1 and year 2 What is Net Exports in year 1 and year 2 ▪ What is GDP in year 1 and year 2 2. In percentage terms, which of the 4 categories of spending changed more from year 1 to year 2. In other words, looking at the results from year 2, which of the categories experienced the highest percentage change. Explain your rationale with numbers. 3. What was the percentage change in GDP? Explain your rationale with numbers. Use 2 decimal points. 4. In your own words, explain why GDP is such an important metric that is used to understand the economic performance of nations. How does looking at GDP per capita help when comparing economic performance of different…
(1a) Your boss has asked you to calculate the needed figures for a government report. The figure you need to calculate is the GDP using the numbers in the table. What is the GDP? Government Purchases $158 billion Depreciation $28 billion Consumption $427 billion Investment $43 billion Exports $87 billion Imports $103 billion Income receipts from rest of the world $7 billion Income payments to rest of the world $5 billion (a) $858 billion (b) $586 billion (c) $612 billion (1b) Which of the following factors important in determining our standard of living are not reflected in the Gross Domestic Product? The value of our imports and exports, the value of leisure. The value of our imports, the improvements in product quality. The value of leisure, the quality of our environment, improvements in product quality. (1c) Which of the following is included in GDP? The cost of eggs for a baker who sells donuts and cakes. The tickets to a…
(b) The table below shows the nominal output and prices for goods produced in Country A for the period of 2019 and 2020. Output in Quantity Price in 2009 Total value |Output in Price in 2020 Total value of Real GDP in 2020 Produced 2019 lin 2019 2020 output in 2019 |Output in 2020 Potatoes $3.5 $3 $3 12 14 Yam Shoes Nominal |GDP 27 $4 $12 12 17 $11 17 Calculate: i. Nominal GDP in 2019 and 2020 ii. Real GDP iii. What is the GDP Deflator (c) Explain TW0 reasons for productivity slow down. (d) Explain the difference between Nominal GDP and Real GDP.