2. Use the information in the table below to calculate the economy's gross domesticproduct (GDP), and explain the significance of the GDP equation. (6pts)CategoryDurable goodsExpenditure (Billions of dollars)$50$125Services$100$10$150Fixed investmentChange in business investmentGovernment purchaseExportsImportsNondurable goods$75$100$75

2. Use the information in the table below to calculate the economy's gross domestic product (GDP), and explain the significance of the GDP equation. (6pts) Category Durable goods Services Expenditure (Billions of dollars) $50 $125 Fixed investment $100 Change in business investment Government purchase Exports Imports Nondurable goods $10 $150 $75 $100 $75

2. Use the information in the table below to calculate the economy's gross domestic product (GDP), and explain the significance of the GDP equation. (6pts) Category Durable goods Services Expenditure (Billions of dollars) $50 $125 Fixed investment $100 Change in business investment Government purchase Exports Imports Nondurable goods $10 $150 $75 $100 $75

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter6: Tracking The U.s. Economy

Section: Chapter Questions

Problem 1.2P

See similar textbooks

Similar questions

What are the main components of measuring GDP with what is produced?
Question 1a) Give the definition of GDP and explain what items are not included in its calculation?b) How is GDP calculated using the expenditure approach?c) How is GDP calculated using the income approach?d) Research the concept of measuring GDP using the value added approach and provide aworking definition?e) Explain the problem of "double-counting" and how it can be avoided in calculating GDP.
1- The four expenditure categories of GDP consist on consumption, government purchases, investment, net-exports. Select one: a. True b. False 2- GDP doesn’t include value of almost all activity that is takes place outside markets. Select one: a. False b. True
1. Inventory is: Group of answer choices a. the total amount of goods that a company produces now, regardless of whether they've sold it or not. b. the stock of goods that a company produced last year, but had to sell for below cost. c. the stock of goods that a company produces now, but keeps to sell at a future time. d. the stock of goods that a company produces and sells in a given time perio 2. The four categories of expenditure (spending) in the economy are wages, rent, interest, and profit. Group of answer choices True False
Table 1 contains price and quantity information for two products produced by Apple,the iPhone and Apple Watch for 2016 and 2017. Let’s assume that they were producedin the United States.Table 1: Apple Products 2016 2017 Price Quantity Price QuantityiPhone $1,200 300 $1,250 400Apple Watch $500 800 $650 850 Calculate the amount contributed by Apple to nominal U.S. GDP from the salesof the two products in 2016 and 2017. Calculate the amount contributed by Apple to real U.S. GDP from the sales ofthe two products in 2016 and 2017. Determine the growth rate of nominal GDP (if Apple were the entire economy). Determine the growth rate of real GDP (if Apple were the entire economy). Use the shortcut you learned to convert between real and nominal growth ratesto determine the growth rate of prices. Is the increase in nominal GDP due to a change in…
3. To which component of GDP expenditure (C,I,G, or NX) does each of the following belongs. A. swiss chocolates imported from europe. B. A driver's license you receive from the department of motor vehicles. C. a candle you buy at a local store. D. a new house.
1(a) In the prescribed research paper “Is Ireland really the most prosperous country in Europe?” Dr. Patrick Honohan states that there are “acute shortcomings” in using GDP in the Irish economy as a measure of economic welfare. Please explain and critically evaluate this viewpoint put forward by Dr. Honohan.
13 . Measuring GDP The following table shows data on consumption, investments, exports, imports, and government expenditures for the United States in 2016, as published by the Bureau of Economic Analysis. All figures are in billions of dollars. Fill in the missing cells in the table to calculate GDP using the expenditure approach. Data (Billions of dollars) Consumption (C) 12,757.9 Investment (I) 3,035.7 Exports (X) 2,232.4 Imports (M) 2,733.7 Net Exports of Goods and Services Government Purchases (G) 3,276.7 Gross Domestic Product (GDP)
1 ) Changes in business inventories are: classified as government purchases. classified as consumption expenditures. classified as investment expenditures. excluded from GDP.