Below is a list of domestic output and national income figures for a certain year. All figures are in billions. The questions that follow askyou to determine the major national income measures by both the expenditures and the income approaches.CategoryBillionsCategoryBillionsPersonal consumption expenditures$245Net exports11Net foreign factor income4Dividends16Transfer payments12Compensation of employees223Rents14Taxes on production and imports18Statistical discrepancy8Undistributed corporate profits21Consumption of fixed capital (depreciation)27Personal taxes26Social Security contributions20Corporate income taxes19Interest13Corporate profits56Proprietors' income33Government purchases72Personal saving20Net private domestic investment33Instructions: Enter your answers as a whole number.a. Using the above data, determine GDP by both the expenditures approach and the income approach. Then determine NDP.GDP using the expenditures approach = $billionGDP using the income approach = $billionNDP = $| billionb. Now determine NI in two ways: first, by making the required additions or subtractions from NDP (method 1); and second, by addingup the types of income and taxes that make up NI (method 2).Method 1= $billionMethod 2 = $billionc. Adjust NI (from part b) as required to obtain Pl.PI = $billiond. Adjust PI (from part c) as required to obtain DI.DI = $billion

Since you have asked multiple questions, we will solve the first question for you. If you want any…

a. Using the above data, determine GDP by both the expenditures approach and the income approach. Then determine NDP. GDP using the expenditures approach = $ billion GDP using the income approach = $ billion NDP = $ |billion

a. Using the above data, determine GDP by both the expenditures approach and the income approach. Then determine NDP. GDP using the expenditures approach = $ billion GDP using the income approach = $ billion NDP = $ |billion

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: Refer to the graph above. The equilibrium level of GDP corresponds to: AP Real expenditures A. GDPO.…

A: Aggregate expenditure is the sum of consumption, investment, government spending and net export.…

Q: If GDP is $3,400 billion, the multiplier is 5, and I rises by 15, what is the new level of GDP? The…

A: GDP is the value of final goods and services produced in the economy within a given period of time.

Q: Real GDP $2,000 2,500 3,000 3,500 Consu mption $1,600 2,000 2,400 2,800 Planne d Invest ment $250…

A: The formula to calculate the GDP is given by: Y = C+I+ G+ NX Where Y is the GDP, C is the…

Q: In an economy of a specific country, the economy's consumption schedule is given in the table below.…

A: DISCLAIMER “Since you have asked multiple questions, we will solve the first three questions for…

Q: Total spending in the economy is equal to consumption plus investment plus government spending plus…

A: Savings are the amount that is left after all the consumer spending in the market from the…

Q: Answer the following questions, which relate to the aggregate expenditures model: Instructions:…

A: GDP (gross domestic product) is records of the market value of total goods and service produced…

Q: Examine the graph above. Suppose that government increases its spending, shifting the aggregate…

A: The total amount of expenditure done by the government on public works defines the amount of…

Q: -0 -0 0 0 Aggregate Expenditures Schedule 32 C

A: The consumption(C) function depicts how much households spend on the consumption of services and…

Q: Deriving and exploring the total expenditures curve The following graph shows total production (TP)…

A: Natural Real GDP (NRGDP) or potential GDP refers to the total value of all goods and services that…

Q: The government of a country decides to double its current level of spending, causing real GDP to…

A: Gross domestic product (GDP): - GDP is the market value of all final goods and services produced in…

Q: 3. Categories of expenditures Tim and Alyssa Espinosa live in Swarthmore, PA. Their son, Brian, owns…

A: The components of GDP are consumption spending, investment spending, government purchases and net…

Q: The government decides to levy a lump-sum taxes by $50 billion which will reduce disposable income.…

A: Lump sump tax A lump-sum tax is a type of taxation that is based on a fixed amount rather than the…

Q: Create a graph for the aggregate expenditures (AE) model in Excel using the data from Table 1: A…

Q: This question examines the expenditures approach to calculating GDP. You will use data on different…

A: Gross domestic product(GDP) measures the money value of all final goods and services produced in an…

Q: Which of the following components of aggregate expenditure is most subject to crowding out? O a.…

Q: In Zionville, GDP is $26,500. Consumption spending is $12,000, Investment spending is $5000, exports…

A: GDP is the sum of consumption(C) investment(I), government expenditure(G) and net export(NX)

Q: If GDP is 3,900, the multiplier is 8, and G falls by 10, wha New GDP is $ billion.

A: Multiplier effect shows that the change in GDP will be greater than the change in spending that has…

Q: 1. If imports are $2 trillion, exports are $1.9 trillion, consumption is $3.8 trillion, investment…

A: The objective of the first two questions is to calculate the Gross Domestic Product (GDP) using the…

Q: The table below shows some of the expenditure amounts in the economy of Arkinia. The MPC, the MTR,…

A: Disclaimer- “Since you have asked multiple questions, we will solve the first three questions for…

Q: I'm doing economics homework and I'm having trouble findong the MPC. In this particular problem,…

A: The marginal propensity to consume (MPC) is a concept in economics that refers to the increase in…

Q: Answer the questions based on the table below. The values are in millions of dollars. What is the…

A: The real GDP is calculated using the formula Real GDPConsumptionPlanned InvestmentGovernment…

Q: Real GDP Consumption Planned Investment Government Purchases Net Exports $5,000 $4,500 $500…

A: Economy is at equilibrium when aggregate supply is equal to aggregate demand (AD=AS).

Q: The table below shows data for three fictitious countries. a. Compute the current MPC for each…

A: MPC is the ratio of change in consumption to change in income. It shows how much of the income is…

Q: Suppose the real GDP in an economy is currently $320 billion, C is $160 billion, I is $50 billion, G…

A: When the total expenditure meets the real GDP value, the economy is said to be in equilibrium. The…

Q: $500 C + l, 450 400 350 300 250 200 150 100 50 45 O $50 100 150 200 250 300 350 400 450 500 550 Real…

A: Aggregate expenditure is the spending on goods and services produced in an economy. Components of…

Q: The table below shows data for three fictitious countries. a. Compute the current MPC for each…

A: MPC is the Marginal propensity to consume it shows the change in consumption in relation to the…

Q: What is the expenditure multiplier in this economy? Planned Government Net Exports Aggregate Change…

A: Expenditure Multiplier refers to the ratio of the change in Gross Domestic Product to the change in…

Q: Sam and Teresa Dhupia live in Swarthmore, PA. Their son, Andrew, owns his own plumbing business. For…

A: GDP = C+I+G+X-M C: Consumption. I: Investment. G: Government Expenditure. X: Export. M: Import.

Q: Use data below to answer the following questions: Consumption expenditures $300 billion, Government…

A: Answer: Given, Consumption expenditure=$300 billionGovernment purchases=$50 billionTaxes=$40…

Q: he table below shows hypothetical values of the expenditure components for the United States in…

A: Consumption expenditure is a expenditure incurred by the resident of the country or household on…

Q: What is the change in GDP according to the *****income**** approach? How do the inputs that make up…

A: GDP of a nation: Gross Domestic Product or GDP signifies the sum of the values of all end…

Q: Answer five questions given the following data for 2019: The Equivalence of Expenditure and Income…

A: A measure of the total valuation of all final products produced within a country's borders during a…

Q: Disposable Income and Consumption Disposable Income Consumption (dollars) $12,000 20, 000 28,000…

A: The consumption is a component of the aggregate demand in the economy. The consumption is the…

Q: Quèstion 14 Refer to the Table for a private closed economy and match the correct answer. Domesti c…

A: Please find the attached answer of both the questions below-

Q: if consumption is $3.8 trillion, investment is $1.1 trillion, government spending is $1.1 trillion,…

A: here we calculate the GDP which are as follow-

Q: What can you say about the state of equilibrium in this economy? Will its real GDP rise, fall, or…

A: When the total expenditure meets the real GDP value, the economy is said to be in equilibrium. The…

Q: Need asap please... If the U.S. government wanted to, it could just say that everyone who is…

A: Gross Domestic Product (GDP) is a basic metric for measuring well-being. The market worth of all…

Q: You are told that taxes in this economy are equal to 100. What is the value of autonomous…

A: Autonomous consumption: Autonomous consumption is defined as consumption spending that occurs when…

Q: The following are a year's data for a hypothetical economy. Comsmption $400B, Government purchases…

A: a) Value of GDP: GDP = C+I+G+(X-M)GDP = $400+$150+$350+($150-$100)GDP = $950B Value of NDP: NDP =…

Q: The table below gives some of the items in the U.S. National Income and Product Accounts in 1995.…

A: The gross domestic product(GDP) of an economy or nation is defined as the market value of all the…

Q: how much is GDP

A: GDP is the Gross Domestic Production. It means the value added by the production of goods and…

Q: Darnell and Eleanor Cohen live in Conshohocken, PA. Their son, Jacques, owns his own plumbing…

A: GDP Examples: GDP is computed with the following formula GDP = C+I+G+MX. C is the money spent on the…

Q: Darnell and Eleanor Cole live in Conshohocken, PA. Their son, Jacques, owns his own plumbing…

A: Gross domestic product (GDP) measures the market value of final goods and services produced within…

Q: Refer to the Table for a private closed economy and match the correct answer. Domestic Output or…

A: Aggregate expenditure = Consumption expenditure + Investment expenditure.

Q: The economy depicted does not engage in international trade and has no government. Planned aggregate…

A: Aggregate expenditure is the total amount of expenditure that is done by all the sectors of an…

Q: A country’s GDP is defined by the following equation: GDP = Consumer Spending + Investment spending.…

A: Disclaimer :- As you posted multipart questions we are supposed to solve only the first 3 questions.…

Q: What is the US GDP for the first quarter and second quarter of 2020? What is the personal…

A: In Keynesian economics, aggregate demand plays a very important role in determining income level and…

Question

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 3 images

SEE SOLUTION Check out a sample Q&A here

Follow-up Questions

Read through expert solutions to related follow-up questions below.

Follow-up Question

what are the answers to part B, C, and D of this problem

Solution

by Bartleby Expert

SEE SOLUTION

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

“If taxes and government spending are increased by the same amount, there will be no effect on equilibrium GDP.” True or false? Explain and support your answer using a specific hypothetical example.
GDP in an economy is $8,000 billion. Consumer expenditures are $4,800 billion, government purchases are $1,600 billion, and gross investment is $1,500 billion. Net exports must be $_____ billion. Your Answer: Answer 4
< 2/2 Part B GDP: Where and what is counted? For each of the following items, write one of the following in the space provided. C if the item is counted as consumption spending I if the item is counted as investment spending ▶ G if the item is counted as government spending Xif the item is counted as exports M if the item is counted as imports NC if the item is not counted in the calculation of the GDP 11. You spend $7.00 to see the latest Justin Bieber movic. 12. A family pays a contractor $100,000 for a house he built for them this year. 13. A family pays $75,000 for a house built three years ago. 14. An accountant from Ernst & Young purchases a new Italian suit. 15. The government increases defense expenditures by $1,000,000,000 16. A homemaker works hard caring for her spouse and two children. 17. Ford Motor Company buys new auto-making robots. 18. Apple Computer builds a new factory in the United States. 19. You buy a new Toyota Tacoma that was made in Japan. 20. A Japanese…
Would a temporary investment tax credit for businesses or a temporary income tax cut for individuals have a greater effect on GDP? Why?
3. If the current equilibrium GDP value is $925,000 and investment spending decreases by $25,000 with an MPC of 0.8, solve for the new equilibrium GDP.
se the information in the table to answer the following questions All numbers are in billions of 2012 dollars Real GDP (Y) $10,000 $11,000 $12,000 Consumption (C) $8.500 $0,300 $10,100 $10,000 $11.700 Planned Investment (1) $1,000 $1,000 $1,000 $13,000 $14,000 The equilibrium level of GDP is $ 12000 billion. The MPC is 0.8 (enter your response to two decimal places) Suppose that not exports increase by $200 billion. Using the multiplier formula, determine the new level of GDP A $200 billion increase in net exports leads to a change in spending of spillon, so the new level of GDP will be $billion $1,000 $1,000 Government Purchases (G) $1,400 $1,400 $1,400 $1,400 $1,400 Net Exports (NX) -$500 -$500 $500 -$500 -$500
3. Categories of expenditures Dmitri and Frances Doherty live in Conshohocken, PA. Their son, Jake, owns his own plumbing business. For each of the following transactions that occur in their lives, identify whether it is included in the calculation of U.S. GDP as part of consumption (C), investment (1), government purchases (G), exports (X), or imports (M). Check all that apply. Transaction Dmitri's employer assigns him to provide consulting services to an Australian firm that's opening a manufacturing facility in China. The Pennsylvania Department of Transportation, a state administration, fixes potholes along PA highway: 23, which feeds into the center of Conshohocken, Frances gets a new video camera made in the United States. Dmitri buys a sweater made in Guatemala. Jake buys a new set of tools to use in his plumbing business. с 00 I O O G O X 0 M O O 0 000 00 000 000
3. Categories of expenditures Shen and Valerie Ferrari live in Swarthmore, PA. Valerie's father, Antonio, lives in Sweden. For each of the following transactions that occur in their lives, identify whether it is included in the calculation of U.S. GDP as part of consumption (C), investment (I), government purchases (G), exports (X), or imports (M). Check all that apply. Transaction Shen's employer upgrades all of its computer systems using U.S.-made parts. Valerie gets a new video camera made in the United States. The state of Pennsylvania repaves highway PA 320, which goes through the center of Swarthmore. Valerie's father in Sweden orders a bottle of Vermont maple syrup from the producer's website. Shen buys a bottle of Italian wine. OOOoo 0 I 00000 G 00 000 X 00000 M OC 0 0 0 0
The figure shows the flows of expenditure and income in an economy. In 2013, U was $2.0 trillion, V was $0.5 trillion, W was $5.0 trillion, J was $1.5 trillion, and Z was - $1.5 trillion. Calculate total income, net taxes, and GDP.
d. What is the value of the multiplier? e. If planned investment spending falls to $200 billion, what will be the new Y*? f. If autonomous consumer spending rises to $200 bil- lion, what will be the new Y*?
Consider the following economy. What is the mpc in this economy? Planned Government Net Exports Aggregate Change in Real GDP (Y) Consumption (C) Investment (I') Purchases (G) (NX) Expenditures (AE) Inventories 10000 8200 800 11000 9000 600 12000 9800 13000 14000 15000 800 Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a 0.50 b 0.75 C 0.80 d 0.90
If the United States introduces universal child care, what will likely happen to GDP? Explain fully why you expect the effect. Will this increase/decrease overall public welfare? Why?