Macroeconomics (Fourth Edition)
4th Edition
ISBN: 9780393603767
Author: Charles I. Jones
Publisher: W. W. Norton & Company
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Question
Chapter 2, Problem 8E
(a)
To determine
Determine the ratio of country J’s
(b)
To determine
Determine the ratio of country J’s GDP to real GDP.
(c)
To determine
Explain the difference between two numbers.
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Students have asked these similar questions
GDP minus depreciation is the formula used to calculate
a- Net national product
b- Gross natioal Product
c- Gross Domestic Product
d- Natioal income
gross private domestic investment $1593
personal taxes 1113
transfer payments 1683
taxes on production & imports 695
corporate income taxes 213
personal consumption expenditures 7304
consumption of fixed capital 1393
US Exports 1059
dividends 434
government purchases 1973
net foreign factor 10
undistributed corporate profit 290
sociual security contributions 748
US imports 1483
statistical discrepency 50
Refer to the accompanying national income data (in billions of dollars) CORPORATE PROFITS are equal to?
(1)
Real
domestic
output
(GDP=DI)
millions
(2)
Aggregate
Expenditures,
private closed
economy
millions
(3)
Exports/
millions
(4)
Imports/
millions
(5)
Net
exports,
private
economy
(6)
Aggregate
expenditures,
open
millions
RM 350
RM 400
RM 450
RM 500
RM 550
RM 600
RM 650
RM 700
RM 390
RM 430
RM 470
RM 510
RM 550
RM 590
RM 630
RM 670
RM 35
RM 35
RM 35
RM 35
RM 35
RM 35
RM 35
RM 35
RM 45
RM 45
RM 45
RM 45
RM 45
RM 45
RM 45
RM 45
a) If the equilibrium GDP for a private closed economy is RM550 million (see table above), what is the change in equilibrium GDP caused by the additional net exports when the private close economy is open?
b) At an original RM35 million level of exports, what would be net exports and the equilibrium GDP if imports were RM10 million greater at each level of GDP?
c) Explain how sticky prices relate to the aggregate expenditure model.
d)…
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