Economics (7th Edition) (What's New in Economics)
Economics (7th Edition) (What's New in Economics)
7th Edition
ISBN: 9780134739090
Author: Hubbard
Publisher: PEARSON
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Chapter 23, Problem 23.3.10PA
To determine

To determine:  The macroeconomic expression due to the changes in inventories from 2007-10.

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Calculate the four components of aggregate expenditure and GDP for the following economy using data from the table below.Instructions: Enter your responses as whole numbers. If you are entering any negative numbers, be sure to include a negative (-) sign in front of those numbers.   GDP Consumption expenditures $550 Exports $100 Government purchases of goods and services $200 Construction of new homes and apartments $200 Sales of existing homes and apartments $200 Imports $50 Beginning-of-year inventory stocks $100 End-of-year inventory stocks $50 Business fixed investment $100 Government payments to retirees $100 Household purchases of durable goods $150 Consumption expenditures: $   Investment expenditures: $  Government Purchases: $ Net Exports: $  GDP: $
In the country of Marzipana, disposable income in Year 1 was $56,000 million and in Year 2 was $60,000 million: It has been observed that each time disposable income changes in this country by $100, consumption changes by $70. Using this information compute the change in consumption from Year 1 to Year 2. A)Consumption increased by $2,800 million in Year 2. B)Consumption decreased by $2,800 million in Year 2. C)Consumption increased by $5,714 million in Year 2. D)Consumption increased by $4,000 million in Year 2. E) Consumption decreased by $4,000 million in Year 2.
In the future report of U.S. Gross Domestic Product (GDP) for Quarter 1 of 2023, which of the following would not be an example of an expenditure that would contribute to an increase in the level of GDP in Q1 of 2023? [note: focus on the direct impact of each of the choices below]   Group of answer choices U.S. household spending on home appliances increases by 0.5% in 2023:Q1   Business investment spending on industrial equipment rises by 2% in 2023:Q1 U.S. Federal government interest payments rise by $120 billion in 2023:Q4   U.S. consumer spending on domestic air travel increases by 8% in 2023:Q1. None of the choices listed because all would contribute to an increase in real GDP in 2023:Q1.

Chapter 23 Solutions

Economics (7th Edition) (What's New in Economics)

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