Foundations of Economics, Student Value Edition Plus MyLab Economics with eText -- Access Card Package (8th Edition)
8th Edition
ISBN: 9780134641843
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Question
Chapter 21, Problem 9SPPA
To determine
Analyse the statement" Total sales by business fell by 0.6 percent mean that
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Analyzing a Table:
Analyzing a Table:
item
billions of dollar
consumption ependiture
6258
investment
1623
government expenditure on goods and services
1630
exports of goods and services
998
imports of goods and services
1252
The table above gives the values of different expenditures in the United States during 1999. Answer the following questions about the United States.
What was the value of net exports of goods and services in 1999?
What was GDP equal to in 1999?
The table below presents a brief summary of City A’s total spending, local GDP, and population changes. Read the table and answer the following questions.
2010
2020
Total spending ($ million)
89
104.12
Local GDP ($ millions)
110
134
Population
50,000
56,275
CPI deflators (2012=1)
0.96
1.05
Calculate % change for City A’s total spending from 2010 to 2020 in current dollars.
*Results round to the nearest 2 decimal places.
Calculate % change for City A’s total spending from 2010 to 2020 in constant dollars.
*Results round to the nearest 2 decimal places.
Why does % change calculated from constant dollars differ from % change calculated from current dollar?
Calculate per capita spending in 2010 and 2020, respectively, using constant dollars.
*Results round to the nearest dollar.
2010 per capita spending:
2020 per capita spending:
Calculate the compound annual growth rate of per capita spending from 2010 to 2020…
Use 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.
Chapter 21 Solutions
Foundations of Economics, Student Value Edition Plus MyLab Economics with eText -- Access Card Package (8th Edition)
Ch. 21.A - Prob. 1SPPCh. 21.A - Prob. 2SPPCh. 21.A - Prob. 3SPPCh. 21.A - Prob. 4SPPCh. 21.A - Prob. 5SPPCh. 21.A - Prob. 6SPPCh. 21.A - Prob. 7SPPCh. 21.A - Prob. 1IAPCh. 21.A - Prob. 2IAPCh. 21.A - Prob. 3IAP
Ch. 21.A - Prob. 4IAPCh. 21.A - Prob. 5IAPCh. 21.A - Prob. 6IAPCh. 21.A - Prob. 7IAPCh. 21 - Prob. 1SPPACh. 21 - Prob. 2SPPACh. 21 - Prob. 3SPPACh. 21 - Prob. 4SPPACh. 21 - Prob. 5SPPACh. 21 - Prob. 6SPPACh. 21 - Prob. 7SPPACh. 21 - Prob. 8SPPACh. 21 - Prob. 9SPPACh. 21 - Prob. 10SPPACh. 21 - Prob. 1IAPACh. 21 - Prob. 2IAPACh. 21 - Prob. 3IAPACh. 21 - Prob. 4IAPACh. 21 - Prob. 5IAPACh. 21 - Prob. 6IAPACh. 21 - Prob. 7IAPACh. 21 - Prob. 8IAPACh. 21 - Prob. 9IAPACh. 21 - Prob. 10IAPACh. 21 - Prob. 11IAPACh. 21 - Prob. 12IAPACh. 21 - Prob. 1MCQCh. 21 - Prob. 2MCQCh. 21 - Prob. 3MCQCh. 21 - Prob. 4MCQCh. 21 - Prob. 5MCQCh. 21 - Prob. 6MCQCh. 21 - Prob. 7MCQ
Knowledge Booster
Similar questions
- Country A has export sales of 20 billion, government purchases of 1,000 billion, business investment is 50 billion, imports are 40 billion, and consumption spending is 2,000 billion. What is the dollar value of GDP?arrow_forwardQuestion 3) GDP, based on a problem from “Principles of Economics” by N. Gregory MankiwThe economy produces two goods, pineapples and smoke detectors. Information on productionand prices is presented in the table below. Year Price of Pineapples Quantity of Pineapples Price of Smoke Detectors Quantity of Smoke Detectors 1 6 950 100 45 2 4 1400 120 50 3 5 1200 110 55 4 6 1100 110 60 a) For each year, calculate the nominal GDP, the real GDP, and the GDP deflator. Use year 1 asthe base year.b) Calculate the percentage change in real GDP from year 1 to year 2, from year 2 to year 3, andfrom year 3 to year 4. Which year was the best for the economic well-being of the country?c) For each year, calculate the contribution of pineapple industry to real GDP (the share of realGDP that comes from the production of pineapples).d) Using GDP deflator, calculate the inflation rate. Which year had the highest inflation rate?e) The price of smoke detectors increased from $100 in year 1 to…arrow_forwardQuestion 3) GDP, based on a problem from “Principles of Economics” by N. Gregory MankiwThe economy produces two goods, pineapples and smoke detectors. Information on productionand prices is presented in the table below. Year Price of Pineapples Quantity of Pineapples Price of Smoke Detectors Quantity of Smoke Detectors 1 6 950 100 45 2 4 1400 120 50 3 5 1200 110 55 4 6 1100 110 60 a) For each year, calculate the nominal GDP, the real GDP, and the GDP deflator. Use year 1 asthe base year.b) Calculate the percentage change in real GDP from year 1 to year 2, from year 2 to year 3, andfrom year 3 to year 4. Which year was the best for the economic well-being of the country?c) For each year, calculate the contribution of pineapple industry to real GDP (the share of realGDP that comes from the production of pineapples).d) Using GDP deflator, calculate the inflation rate. Which year had the highest inflation rate?e) The price of smoke detectors increased from $100 in year 1 to…arrow_forward
- You did some work on it. Sub parts to be completed/solved. Need help with this 1. Spending - Included in the U.S. GDP for 2020, or not included ? If so, under which expenditure category (C, I, G, X etc,?) If not, why not? A.You buy a $20,000 new Toyota made in San Antonio. ____________________ B. Microsoft buys a $20,000 new Toyota made in San Antonio ________________ C. Kendrick Jones, of Alberta, Canada, buys a $20,000 new Toyota made in San Antonio_______________ D. You buy $20,000 in General Motors Corporation stock ___________________ E. You pay a lawyer $2,000 to sue your neighbor for building a fence on your land, and lose the suit. ________________________ F, You buy your neighbor’s used fence for $1,000. _________________________ H. You pay Alamo Colleges $1200 tuition for classes you took during 2020 ____________________________ I. The federal government sends Nruce Borton a social security check for $600 during 2020. _______________________________ J. The San…arrow_forward1.3 Read the following extract and answer questions 1.3-1.5.South Africa’s economy grew by 1.1% in the first quarter of the year. Stats SA has published the latest gross domestic product (GDP) data covering the first quarter of the year, showing that the economy grew by 1.1% in the first three months of 2021. The growth follows a revised 1.4% rise in real GDP in the fourth quarter of 2020. On an annualised basis, the economy grew 4.6% quarter-on-quarter. Following confusion caused by the annualisation of GDP data in 2020 – amid the Covid-19 pandemic and resulting lockdowns – Stats SA said it would no longer use the annualised data as the headline GDP statistic. During periods of steady economic growth, annualising is a useful way of expressing quarter-on-quarter performance in annual terms, Stats SA said. However, during periods of economic instability, annualising can be misleading, because it exaggerates growth rates that are unlikely to be repeated. The central problem that is…arrow_forward1.3 Read the following extract and answer questions 1.3-1.5.South Africa’s economy grew by 1.1% in the first quarter of the year Stats SA has published the latest gross domestic product (GDP) data covering the first quarter of the year, showing that the economy grew by 1.1% in the first three months of 2021.The growth follows a revised 1.4% rise in real GDP in the fourth quarter of 2020. On an annualised basis, the economy grew 4.6% quarter-on-quarter.Following confusion caused by the annualisation of GDP data in 2020 – amid the Covid-19 pandemic and resulting lockdowns – Stats SA said it would no longer use the annualised data as the headline GDP statistic.During periods of steady economic growth, annualising is a useful way of expressing quarter-on-quarter performance in annual terms, Stats SA said. However, during periods of economic instability, annualising can be misleading, because it exaggerates growth rates that are unlikely to be repeated.Source:…arrow_forward
- 4. Measuring GDP The following table shows data on consumption, investments, exports, imports, and government expenditures for the United States in 2014, 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) 11,930.3 Investment (I) 2,851.6 Exports (X) 2,337.0 Imports (M) 2,875.2 Net Exports of Goods and Services Government Purchases (G) 3,175.2 Gross Domestic Product (GDP)arrow_forwardQ:-1 Himani and Ravi live in a deserted nation called Desertland. Himani spends all her time growing bananas and coconuts. This year, she harvested 1000 bananas and 500 coconuts. She values one coconut as worth two bananas. Himani gave Ravi 200 bananas and 100 coconuts in exchange for help in harvesting the fruits. Himani stored 100 bananas in her house for future consumption, while Ravi consumed all his bananas and coconuts. In terms of coconuts, calculate the GDP of Desertland using the following: 1a. Expenditure method 1b.Income methodarrow_forwardGive 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?arrow_forward
- Category Expenditures (billions of dollars) Fixed business investment $2,950.00 Durable goods $2,300.00 Exports $700.00 Federal government purchases $1,250.00 New home construction $1,300.00 Imports $840.00 Change in inventories $-200.00 Nondurable goods $4,800.00 Services $9,450.00 State and local government purchases $2,100.00 Use the information in the table to calculate the following:(a) Consumption: $ billion(b) Investment: $ billion(c) Government: $ billion(d) Net exports: $ billion(e) GDP: $ billionarrow_forward1. Spending - Included in the U.S. GDP for 2020, or not included ? If so, under which expenditure category (C, I, G, X etc,?) If not, why not? A.You buy a $20,000 new Toyota made in San Antonio. ____________________ B. Microsoft buys a $20,000 new Toyota made in San Antonio ________________ C. Kendrick Jones, of Alberta, Canada,goes to Toronto Autos to buy a $20,000 new Toyota made in San Antonio_______________ D. You buy $20,000 in General Motors Corporation stock ___________________ E. You pay a lawyer $2,000 to sue your neighbor for building a fence on your land, and lose the suit. ________________________ F, You buy your neighbor’s used fence for $1,000. _________________________ H. You pay Alamo Colleges $1200 tuition for classes you took during 2020 ____________________________ I. The federal government sends Nruce Borton a social security check for $600 during 2020. _______________________________ J. The San Antonio Independent School District pays Ricki Kicker $55,000…arrow_forwardfor the following question , please indicate whether current GDP of the United States will be affected and, if so, by how much .In each case, indicate also which component(s) of GDP will be affected and by how much Case 1: Maria moved from Chicago to Colorado in November 2020. She paid $1,200 to the professional moving company she hired and, after the moving was completed, she tipped the workers $250.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Principles of Economics 2eEconomicsISBN:9781947172364Author:Steven A. Greenlaw; David ShapiroPublisher:OpenStax
Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
Principles of Economics 2e
Economics
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:OpenStax
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning