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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Chapter 9, Problem 2TY
To determine
To describe: An expenditure schedule, the equilibrium level and comparison using income-expenditure diagram.
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Use the following information to complete the calculations.
C = 15235 + 0.67Y
I = 8777
G = 3425
NX = -551
What is the value of autonomous expenditure (AE)? Round your answer to the nearest dollar.
AE: $
Calculate the equilibrium level of GDP. Round your answer to the nearest dollar.
GDP: $
Suppose the data BELOW is for a given year from the annual Economic Report of the President. Calculate GDP using the expenditure approach (Amount in billions of dollars):
Corporate profits: $ 305Depreciation: $ 479Gross private domestic investment: $716Personal taxes: $ 565Personal saving: $120Government spending: 924Imports: $ 547Exports: $ 427Personal consumption expenditures: $ 2,966Indirect business taxes: $ 370Contributions for Social Security (FICA): $ 394Transfer payments and other income: $ 967
The gross domestic product (GDP) of the United States is defined as the
all
in a given period of time.
Based on this definition, indicate which of the following transactions will be included in (that is, directly increase) the GDP of the United States in
2023.
Scenario
Generic Motor Company, a U.S. automobile company, produces a pickup truck at a manufacturing facility in Lordstown
on January 6, 2023. It sells the car at a dealership in Dallas on February 2, 2023.
Graincorp, a U.S. agricultural company, produces corn syrup at a plant in Iowa on September 25, 2023. It sells the corn
syrup to Crunchy's for use in the production of cereal that will be made in the United States in 2023. (Note: Focus
exclusively on whether production of the corn syrup increases GDP directly, and ignore the effect of production of the
cereal on GDP.)
Using wood from a red maple tree on your Michigan property you make a birdhouse in 2023. A similar birdhouse sells
for $55 in a craft store.
Sleepytown, a…
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Macroeconomics: Principles and Policy (MindTap Course List)
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- This question has four parts. (its not a writing assignment, just asking for a numerical value or simple answer) 1.1. What is the US GDP for the first quarter and second quarter of 2020? What is the personal consumption expenditures for the first quarter and second quarter of 2020? Go to the website for the Bureau of Economic Analyses (BEA): https://www.bea.gov/ Section 1: Domestic Product and Income; Table 1.1.5 1.2. Use the information in Table 1 to analyze aggregate expenditures (AE) model below (Figure 1. Equilibrium in a Private Closed Economy). (table 1 and figure 1 are in the attachments) 1.3. Identify the mistake and explain why the graph of the aggregate expenditures line does not correctly illustrate the economy's equilibrium. 1.4. Create a graph for the aggregate expenditures (AE) model using the data from Table 1: A Private Closed Economy. Tips: Remember, the 45degree line (also known as the Keynesian Cross) is a tool that shows how differences in aggregate…arrow_forwardBased on this definition, indicate which of the following transactions will be included in (that is, directly increase) the GDP of the United States in 2021. Scenario Sleepytown, a Finnish furniture company, produces a bed frame at a plant in Virginia on December 12, 2021. It sells the bed frame to a college student on December 30. Thickburger, a U.S. fast-food company, produces a double cheeseburger at one of its many locations throughout the midwest on January 12, 2021. It sells the double cheeseburger to a customer that same day. Using wood from a red maple tree on your Michigan property you make a birdhouse in 2021. A similar birdhouse sells for $55 in a craft store. Athena's, a U.S. shoe company, produces a pair of basketball shoes at a plant in Honduras on March 22, 2021. Athena's imports the pair of basketball shoes into the United States on May 27, 2021. Cleancutters, a U.S. lumber company, produces wood at a plant in Oregon on September 6, 2021. It sells the wood to Buildit…arrow_forwardCalculate the four components of expenditure and GDP for the following economy using data from the table below. Instructions: Enter your responses as whole numbers. GDP Data $600 Consumption expenditures Exports $75 $200 Government purchases of goods and services Construction of new homes and apartments Sales of existing homes and apartments Imports Beginning-of-year inventory stocks End-of-year inventory stocks Business fixed investment Government payments to retirees Household purchases of durable goods $100 $200 $50 $100 $125 $100 $100 $150 Consumption expenditures: Investment expenditures: $| Government Purchases: $ Net Exports: GDP:arrow_forward
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