Macroeconomics
13th Edition
ISBN: 9781337617390
Author: Roger A. Arnold
Publisher: Cengage Learning
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Chapter 9, Problem 7WNG
To determine
Explain the relationship between recessionary gap, inflationary gap or long run equilibrium.
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Given the following: Ca = $450, Ig = $250, Xn = − $10, and G = $30, what is the economy’s GDP.
If consumption is $11 trillion, investment is $2 trillion, government purchases are $3 trillion, exports are $2 trillion and imports are $3 trillion, calculate GDP. Use the formula GDP = C + I + G + (X – IM). I suggest just leaving the numbers in trillions (rather than adding in 9 extra zeroes).
In 2019, Mr. Francis paid $10m for a house that was built in 2019 and sold that year for $8m. What value will this transaction add to GDP in 2020?
Chapter 9 Solutions
Macroeconomics
Ch. 9.1 - Prob. 1STCh. 9.1 - Prob. 2STCh. 9.1 - Prob. 3STCh. 9.2 - Prob. 1STCh. 9.2 - Prob. 2STCh. 9.2 - Prob. 3STCh. 9.3 - Prob. 1STCh. 9.3 - Prob. 2STCh. 9.3 - Prob. 3STCh. 9 - Prob. 1QP
Ch. 9 - Prob. 2QPCh. 9 - Prob. 3QPCh. 9 - Prob. 4QPCh. 9 - Prob. 5QPCh. 9 - Prob. 6QPCh. 9 - Prob. 7QPCh. 9 - Prob. 8QPCh. 9 - Prob. 9QPCh. 9 - Prob. 10QPCh. 9 - Prob. 11QPCh. 9 - Prob. 12QPCh. 9 - Prob. 13QPCh. 9 - Prob. 14QPCh. 9 - Prob. 15QPCh. 9 - Prob. 16QPCh. 9 - Prob. 17QPCh. 9 - Prob. 18QPCh. 9 - Prob. 1WNGCh. 9 - Prob. 2WNGCh. 9 - Prob. 3WNGCh. 9 - Prob. 4WNGCh. 9 - Prob. 5WNGCh. 9 - Prob. 6WNGCh. 9 - Prob. 7WNG
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- The natural level of real GDP is that level ofarrow_forwardIf U.S. government statistics counted education spending as part of the investment, which of the following would rise, which would fall, and which would remain unchanged? You might use rise, fall, and stay unchanged more than once each or you might not. Consumption Investment Gross domestic productarrow_forwardThe difference between nominal GDP and real GDP is: real GDP adjusts for inflation real GDP excludes imports and exports nominal GDP adjusts for inflation nominal GDP measures actual productivityarrow_forward
- True or false GDP is a macroeconomic concept.arrow_forwardHow Real GDP is measured? Explain Real GDP of the United States at present time.arrow_forwardGiven the following: consumption = 430, investment = 300, government expenditure = 150 and net export = -70, what is the economy’s GDP ?arrow_forward
- Why do you think that GDP does not grow at a steady rate, but rather speeds up and slows down?arrow_forwardIf real GDP declines in a given year, nominal GDP also must decline. Do you agree? Explain your answer.arrow_forwardFor 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 C I G X M The Pennsylvania Department of Transportation, a state administration, fixes potholes along PA highway 23, which feeds into the center of Conshohocken. Felix's employer upgrades all of its computer systems using U.S.-made parts. Janet's father in Sweden orders a bottle of Vermont maple syrup from the producer's website. Janet gets a new video camera made in the United States. Felix buys a sweater made in Guatemala.arrow_forward
- Nominal GDP rose by more than $1 trillion between 2015 and 2016. We can therefore be sure that the economy expanded. Critically evaluate.arrow_forwardIf nominal GDP rises: real GDP must fall. real GDP must also rise. real GDP may either rise or fall. we can be certain that the price level has risen.arrow_forwardGiven the following: Ca = $450, Ig = $250, and G = $30, what is the economy’s equilibrium GDP if they don't have trade relation with anyone?arrow_forward
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