Macroeconomics: Principles and Policy (MindTap Course List)
13th Edition
ISBN: 9781305280601
Author: William J. Baumol, Alan S. Blinder
Publisher: Cengage Learning
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Question
Chapter 6.A, Problem 3TY
To determine
To compute:
The missing values of the table.
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Which of the following statements best describe how economists calculate GDP?
Group of answer choices
Economists at the Census bureau collect data from surveys sent to consumers, private firms and government agencies and add them up on a yearly basis.
Economists at the Bureau of Economic Analysis pull together data on sales, imports, exports, government purchase and investments from various government sources every 3 months.
Economists at the Bureau of Labor Statistics collect data from surveys sent to consumers, private firms and government agencies and add them up every 3 months.
Economists at the Congressional Budget Office calculate GDP for a given year by adjusting the previous year’s GDP with inflation.
Using the following information, calculate the GDP at Market Price
Sales 2000
Intermediate consumption 500
Change in inventory 10
Production Tax 20
Production Subsidies 5
Suppose the information in the following table is for a simple economy that produces only four goods and services: shoes, hamburgers, shirts, and cotton. Assume that shoes, hamburgers, and shirts are final goods and that all the cotton is used in the production of shirts. Calculate the GDP deflator for 2015. Use 2009 as the base year for the calculations. Provide your answer as a number rounded to two decimal places. Do not include any symbols, such as "$," "=," "%," or "," in your answer.
Chapter 6 Solutions
Macroeconomics: Principles and Policy (MindTap Course List)
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Similar questions
- Which of the following are included in GDP calculations? a. Cleaning services performed by Molly Maid Corporation b. Lawn-mowing services performed by a neighborhood child c. Drugs sold illegally on a local street comer d. Prescription drugs manufactured in the United States and sold at a local pharmacy e. A rug woven by hand in Turkey f. Air pollution that diminishes the quality of the air you breathe g. Toxic-waste cleanup performed by a local company h. Car parts manufactured in the United States for a car assembled in Mexico i. A purchase of 1,000 shares of IBM stock j. Monthly Social Security payments received by a retireearrow_forwardList some of the reasons why economists should not consider GDP an effective measure of the standard of living in a county.arrow_forwardUse the following table to find the missing values: GDP Chart.pdf For each of the following determine if the item is counted in GDP: (a) Eggs you buy at the supermarket to make pancakes with for your kids for breakfast. (b) Eggs the local diner buys to make pancakes with to sell to customers. (c) A motherboard that Dell buys to put in the laptops they make. (d) A used car that a salesman sells off the lot at a car dealership. (e) A tow bar that the county airport buys to move airplanes around on the ramp.arrow_forward
- If a country produces the following items during the year, calculate GDP.Item Quantity Price Market Value(Quantity x Price)Cars 10 $20,000Computers 100 $1, 000Books 1,000 $10GDP =arrow_forwardplease calculate correct gdparrow_forwardFor the purpose of calculating GDP, investment is spending on real estate and financial assets such as stocks and bonds. Group of answer choices True Falsearrow_forward
- Which of the following is NOT included in Canadian GDP calculations? air pollution that contaminates the air you breathe car parts manufactured in Canada for assembly of a car in Mexico toxic waste cleanup performed by a local company cleaning services performed by a local cleaning companyarrow_forwardGDP = $ Billion Use the data below to calculate GDP using the income approach. (I intentionally left out some of the expenditure categories so that you must use the income approach). All figures are in billions of dollars: Gross Private Domestic Investment 848.3 Proprietor's Income 413.9 Dividends 190.6 Wages and Salaries 3183.1 Undistributed Corporate Profits 62.3 Corporate Income Taxes 199.6 Imports 638.6 Government Expenditures | 1296.2 Rents 51.9 Transfer Payments 693.1 Exports 562.6 Indirect Business Taxes 447.4 Consumption of fixed capital (depreciation) 778.3 Net foreign factor income earned in the U.S. 33.7 Social Security Contributions 483.6 Interest 429.5 Personal Taxes 591.9 ....arrow_forwardBased on this definition, indicate which of the transactions in the following table will be included in (that is, directly increase) the GDP of the United States in 2019.arrow_forward
- Your aunt, who lives in Royal Oak decides to buy a new, American made dress. In GDP accounting this expenditure counts as Question 5 options: a) export spending b) investment spending c) consumption spending d) government spendingarrow_forwardCalculate GDP in the following economy given this information: Consumer purchases: $100 per year Investment purchases: $50 per year Government purchases: $20 per year Total exports: $50 per year Total imports: $70 per year.arrow_forwardAre the following included in US GDP? Briefly explain your answer. Used textbooks sold at your college bookstore Use books sold at a garage sale Cars made in the United States at a Toyota factory Cars made in Germany at a General Motors factory The price paid by an American tourist staying at a French hotel The price paid by a German tourist staying at a New York hotelarrow_forward
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