Pearson eText Economics -- Instant Access (Pearson+)
13th Edition
ISBN: 9780136879459
Author: Michael Parkin
Publisher: PEARSON+
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Chapter 21, Problem 17APA
To determine
Explain the aggregate expenditure method.
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Give typing answer with explanation and conclusion
what is the US GDP for the first quarter and second quarter of 2021? What is the personal consumption expenditures for the first quarter and second quarter of 2021?
The table lists some national accounts data for the United States in 2008
Calculate U.S GDP in 2008.
Explain the approach (expenditure or income)that you used to calculate GDP.
Item
Billions of Dollars
Wages Paid to labor
8,000
Consumption expenditure
10,000
Net operation surplus
3,200
Investment
2,000
Government expenditure
2,800
Net exports
-700
Depreciation
1,800
A. The table below shows the national income of a country in 2012. Use the data to answer the
questions that follow:
ITEMS
$ MILLIONS
Personal Consumption Expenditure
640.00
Gross private Domestic Investment
180.00
Government Expenditure
220.00
Exports of goods and services
175.00
Imports of goods and services
202.00
Subsidies
48.00
Indirect business taxes
322.00
Consumption of fixed capital
115.00
Net property income from Abroad
80.00
i.
Define Gross Domestic Product (GDP
ii.
Calculate the:
a. Gross Domestic Product (GDP)
b. Gross National Product (GNP)
Chapter 21 Solutions
Pearson eText Economics -- Instant Access (Pearson+)
Ch. 21.1 - Prob. 1RQCh. 21.1 - Prob. 2RQCh. 21.1 - Prob. 3RQCh. 21.2 - Prob. 1RQCh. 21.2 - Prob. 2RQCh. 21.2 - Prob. 3RQCh. 21.2 - Prob. 4RQCh. 21.2 - Prob. 5RQCh. 21.3 - Prob. 1RQCh. 21.3 - Prob. 2RQ
Ch. 21.3 - Prob. 3RQCh. 21.3 - Prob. 4RQCh. 21.3 - Prob. 5RQCh. 21 - Prob. 1SPACh. 21 - Prob. 2SPACh. 21 - Prob. 3SPACh. 21 - Prob. 4SPACh. 21 - Prob. 5SPACh. 21 - Prob. 6SPACh. 21 - Prob. 7SPACh. 21 - Prob. 8SPACh. 21 - Prob. 9APACh. 21 - Prob. 10APACh. 21 - Prob. 11APACh. 21 - Prob. 12APACh. 21 - Prob. 13APACh. 21 - Prob. 14APACh. 21 - Prob. 15APACh. 21 - Prob. 16APACh. 21 - Prob. 17APACh. 21 - Prob. 18APACh. 21 - Prob. 19APACh. 21 - Prob. 20APACh. 21 - Prob. 21APACh. 21 - Prob. 22APACh. 21 - Prob. 23APACh. 21 - Prob. 24APACh. 21 - Prob. 25APACh. 21 - Prob. 26APACh. 21 - Prob. 27APACh. 21 - Prob. 28APA
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- What is the formula for measurement on the demand side of GDP? Include a brief definition of each of the formula componentsarrow_forward2010 2011 2012 2013 2014 $700 $600 $800 $750 $1000 a. Plot the aggregate consumption function. b. The Marginal Propensity to Consume= c. The Marginal Propensity to Save = d. The Aggregate Consumption formula is $760 $680 $840 $800 $1000arrow_forwardThe table contains price and quantity information for two vehicle models produced by Ford Motor Company, the F-series trucks and Escape SUVs. 2016 2016 2017 2017 price quantity price quantity ford escapes $24,485 307,069 $24,645 308,296 ford trucks $44,400 820,799 $24,645 896,764 a. Calculate the amount contributed by Ford to U.S. GDP (real and nominal) from the sales of the two models in 2016 and 2017. b. Determine the growth rate of nominal GDP (if Ford were the entire economy). c. Determine the growth rate of real GDP (if Ford were the entire economy).arrow_forward
- a. Answer the following questions based on above table i. Calculate Canada GDP. ii. Explain the approach (expenditure or income) that you used to calculate the Canada GDP.arrow_forwardSet the GDP expenditure to search for the 4th Quarter data from last year (example Q4/2021). Set Prices: to “Current prices,” and set Seasonal adjustment: to “Seasonally adjusted at annual rates.” Click apply to view the data. There is a button to Download the data if you require. The data below in Column A shows items from Canada’s national accounts in Qtr4 of 202x. The values are in x$1,000,000. Use the expenditure approach to calculate the value of the GDP in column B. Use the income approach to calculate the value of the GDP in column C. Explain in your own words the reason why the aggregate GDP income equals the aggregate GDP expenditure. GDP Category (A) Qtr4-202x Values (B) GDP from Expenditure Approach (C) GDP from Income Approach Consumer consumption expenditure 1,385 Government consumption and expenditure 659 Rent and interest 347 Investments by businesses 535 Corporate profit…arrow_forwardwhy the expenditure apporach is used to calculate gdparrow_forward
- Q no: 17 Explain the approach (expenditure or income) that you used to calculate GDP? Use the following data to work question 17. The table lists some macroeconomic data for the United States in 2009.Item Billions of dollarsWages paid to labor 8,000Consumption expenditure 10,000Net operating surplus 3,400Investment 1,500Government expenditure2,900Net exports –340arrow_forwardUse the following data to work Problems 16 and 17. The table lists some macroeconomic data for the United States in 2009. Item Billions of dollars Wages paid to labor 8,000 Consumption expenditure 10,000 Net operating surplus 3,400 Investment 1,500 Government expenditure 2,900 Net exports –340 Q no 16 Calculate U.S. GDP in 2009 Q no: 17 Explain the approach (expenditure or income) that you used to calculate GDP.arrow_forwardConsider an economy that produces and consumes Bread and Automobile. Data for two different years 2005 and 2010 is given in the following table. Year 2005 2010Price of Automobiles $ 5000 $ 6000Price of a loaf of bread $10 $20Number of automobiles produced 100 120Number of loaves of bread produced 500,000 400,000 Using the year 2005 as a base year,a. Calculate the nominal and real GDP of 2010.b. Find the value of GDP Deflator for the year 2010 and interpret.c. Calculate the inflation rate in 2010.arrow_forward
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