Use the following table to answer the question below for an economy that has no government, no international trade or anyassociation with other countries:Consumption(billions)Level of Output(billions)$240$260$280$300$320$340$360$340$380$356$400$372If gross investment is $4 billion, the equilibrium level of GDP (output) will be:a) $340b) $280Oc) $260$244$260$276$292$308$324d) $360

Aggregate demand is the sum of consumption investment government spending and net export. => AD =…

Use the following table to answer the question below for an economy that has no government, no international trade or any association with other countries: Level of Output (billions) $240 $260 $280 $300 $320 $340 a) $340 $360 $340 $380 $356 $400 $372 If gross investment is $4 billion, the equilibrium level of GDP (output) will be: Ob) $280 Consumption. (billions) c) $260 $244 $260 $276 $292 $308 $324 d) $360

Use the following table to answer the question below for an economy that has no government, no international trade or any association with other countries: Level of Output (billions) $240 $260 $280 $300 $320 $340 a) $340 $360 $340 $380 $356 $400 $372 If gross investment is $4 billion, the equilibrium level of GDP (output) will be: Ob) $280 Consumption. (billions) c) $260 $244 $260 $276 $292 $308 $324 d) $360

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Consider a country with a consumption of $485 billion, an investment of $175 billion, government purchases of $176 billion, government transfer payments of $24 billion, exports of $19 billion and imports of $40 billion for the year 2020. What is the country's total GDP for the year 2020? Write your answer in billions of dollars.
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Question 3
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)
None
$3 trillion$6 trillion$8.5 trillion$11.5 trillion
Hand written solutions are strictly prohibited
Personal consumption expenditures $4,750 Exports $810 Federal government spending $1,400 Social Security taxes $600 Depreciation $450 Indirect Business Taxes $550 New Residential Construction $800 Imports $850 Non Residential Investment $300 Corporate Income Taxes $200 Corporate Profits $50 Personal Taxes $800 Business Taxes $1,000 Transfer Payments $700 Part A: In the table above and using the Expenditure Approach calculate the Gross Domestic Product (GDP) in millions of dollars Part B: Now assume that consumers purchase an extra $2000 of goods produced overseas, i.e., the consumption expenditures (from Part A) increase to $6,750. How would this scenario affect the GDP deflator, i.e., increase, decrease, remain unaffected or there is not enough information to tell?
The following table shows data on personal consumption expenditures, gross private domestic investment, exports, imports, and government consumption expenditures and gross investment for the United States in 2007, as published by the Bureau of Economic Analysis. All figures are in billions of dollars. Fill in the missing cells in the following table to calculate GDP. Components Personal Consumption Expenditures (CC) $9,734.2 Gross Private Domestic Investment (II) $2,125.4 Exports (XX) $1,643 Imports (MM) $2,351 Net exports of goods and services (X−MX−M) Government Consumption Expenditures and Gross Investment (GG) $2,689.8 Gross domestic product (GDP) This method of calculating GDP, which involves summing the , is called the approach.
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