The table below details the composition of an economy’s GDP by spending category. Category Expenditures (billions of dollars) Fixed business investment $3,550.00 Durable goods $2,600.00 Exports $600.00 Federal government purchases $1,250.00 New home construction $1,000.00 Imports $720.00 Change in inventories $-300.00 Nondurable goods $4,400.00 Services $9,350.00 State and local government purchases $2,150.00 Use the information in the table to calculate the following: a) Consumption: $ billion b) Investment: $ billion c) Government: $ billion d) Net exports: $ billion e) GDP: $ billion
The table below details the composition of an economy’s GDP by spending category. Category Expenditures (billions of dollars) Fixed business investment $3,550.00 Durable goods $2,600.00 Exports $600.00 Federal government purchases $1,250.00 New home construction $1,000.00 Imports $720.00 Change in inventories $-300.00 Nondurable goods $4,400.00 Services $9,350.00 State and local government purchases $2,150.00 Use the information in the table to calculate the following: a) Consumption: $ billion b) Investment: $ billion c) Government: $ billion d) Net exports: $ billion e) GDP: $ billion
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
The table below details the composition of an economy’s
| Category | Expenditures (billions of dollars) |
| Fixed business investment | $3,550.00 |
| Durable goods | $2,600.00 |
| Exports | $600.00 |
| Federal government purchases | $1,250.00 |
| New home construction | $1,000.00 |
| Imports | $720.00 |
| Change in inventories | $-300.00 |
| Nondurable goods | $4,400.00 |
| Services | $9,350.00 |
| State and local government purchases | $2,150.00 |
Use the information in the table to calculate the following:
a) Consumption: $ billion
b) Investment: $ billion
c) Government: $ billion
d) Net exports: $ billion
e) GDP: $ billion
Part 2
Think about the different components of GDP and how they change with the business cycle. Which component of consumption fluctuates the most?
Choose one:A. nondurable goodsB. durable goodsC. new home constructionD. services
Choose one:A. nondurable goodsB. durable goodsC. new home constructionD. services
Part 3
Consider the net exports component of GDP. Suppose exports increase by $100 billion and imports decrease by $100 billion. Net exports will
.
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