The following provides data for an economy in 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 payments to retirees $200 Household purchases of durable goods $300 Beginning-of-year inventory $500 End-of-year inventory $600 Business fixed investment $300 Given the data, compute the investment component of GDP. $400 $800 $900 $300

The following provides data for an economy in 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 payments to retirees $200 Household purchases of durable goods $300 Beginning-of-year inventory $500 End-of-year inventory $600 Business fixed investment $300 Given the data, compute the investment component of GDP. $400 $800 $900 $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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Which of the following is true about the components of GDP? When we buy stocks, this is economic investment. Net exports must always be a negative number. Government purchases make up the largest part of GDP. A refrigerator is a durable consumption good.
What is the value for Gross Domestic Product if consumer spending is $22,396, gross private domestic investment is $11,665, government purchases are $6,110, exports are $1,561, imports are $4,373, wages are $11,387, and indirect business taxes are $1,712? Other values for potential components of GDP are unknown. Enter the value without a $ and without commas.
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Can you use the list below to compute GDP using the Expenditures approach? Personal Consumption expenditures $600 Transfer payments $15 Consumption of fixed capital $20 Interest $11 Exports $15 Government purchases $85 Compensation of employees $225 Imports $18 Net private domestic investment $65
Definition of GDP and explanation of why this is equal to national income [ an explanation of how expenditure approach and income approach to GDP are related ]
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Q.01 a) Explain why the Income and Expenditure approach yield the same value for GDP. b) Examine the values for National Income (NI), Personal Income (PI), and Disposable Personal Income (DPI) on Template. Rank them in order from largest to smallest. Based on the information in the template, list and explain one or two items that are being added or subtracted as we move from NI to PI to DPI.
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The table shows some of the items in a country's National Income and Product Accounts in 2017. Use the expenditure approach to calculate GDP in 2017. GDP in 2017 using the expenditure approach is $ trillion. Item Consumption expenditure Government expenditure Indirect taxes less subsidies Depreciation Net factor income from abroad Investment Net exports Statistical discrepancy Amount (trillions of dollars) 10.2 3.1 1.0 1.9 0.2 1.7 -0.5 0