EP ECONOMICS,AP EDITION-CONNECT ACCESS
20th Edition
ISBN: 9780021403455
Author: McConnell
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Chapter 25, Problem 4RQ
To determine
Calculate government expenditure.
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Check out a sample textbook solutionStudents have asked these similar questions
What is the GDP for a country where consumption spending is $400 billion, gross investment is $125 billion, government spending is $135
billion, exports are $200 billion, and imports are $175 billion?
O $685 billion
O $415 billion
O $635 billion
O $1 035 billion
32
(Table) According to the table, when using the expenditure approach, GDP is
Category
Proprietors' income
Capital consumption allowance
Federal government purchases of goods and services
Compensation of employees
Personal consumption expenditures
Billions
$300
440
200
S00
950
90
60
Corporate profts
Exports
Gross private domestic investment
Rental income
State and local government purchases of goods and services
Net interest
Federal government deficit
Imports
500
30
150
100
250
90
O $1,770 billion.
O $2,020 billion.
O $1,320 billion.
O $1,330 billion.
The government decides to give tax-exempt status to a new organization whose mission is to award college scholarships
to members of the armed forces. In doing so, the government is acting in its role to promote economic growth by
O ensuring a stable legal system.
O enhancing physical and human capital.
O ensuring a stable and secure financial system.
promoting free and competitive markets.
1.
dix
Suppose the country produces only two goods: beef and wheat. The table
below summarizes the quantities of each good produced and the
corresponding prices in every year since 2005:
Beef Wheat
Nomin
al
PQP Q GDP
2005 $4 12 $1. 22
0
6
0
11 $1.
23
4
0
15
$1.
24
5 9 5
2007
2006 $4.
5
$4.
6
LO
5
LO
Real
GDP
(in
2006
price
s)
GDP
Deflat
or
Inflation
Rate
(using
GDP
Deflator)
CP
I
Inflation
Rate
(using
CPI)
Chapter 25 Solutions
EP ECONOMICS,AP EDITION-CONNECT ACCESS
Ch. 25 - Prob. 1DQCh. 25 - Prob. 2DQCh. 25 - Prob. 3DQCh. 25 - Prob. 4DQCh. 25 - Prob. 5DQCh. 25 - Prob. 6DQCh. 25 - Prob. 7DQCh. 25 - Prob. 8DQCh. 25 - Prob. 9DQCh. 25 - Prob. 10DQ
Ch. 25 - Prob. 11DQCh. 25 - Prob. 12DQCh. 25 - Prob. 13DQCh. 25 - Prob. 1RQCh. 25 - Prob. 2RQCh. 25 - Prob. 3RQCh. 25 - Prob. 4RQCh. 25 - Prob. 5RQCh. 25 - Prob. 6RQCh. 25 - Prob. 7RQCh. 25 - Prob. 8RQCh. 25 - Prob. 9RQCh. 25 - Prob. 1PCh. 25 - Prob. 2PCh. 25 - Prob. 3PCh. 25 - Prob. 4PCh. 25 - Prob. 5PCh. 25 - Prob. 6PCh. 25 - Prob. 7PCh. 25 - Prob. 8P
Knowledge Booster
Similar questions
- billions of dollars Personal consumption expenditures 500 Gross private domestic investment 400 Social Security payments to households 60 Federal government purchases of goods and services 100 State and local government purchases of goods 200 Imports 180 Net exports |-50arrow_forwardAssume the following information for an imaginary, closed economy. GDP - $100,000; taxes - $22,000; government purchases - $25,000; national saving = $15,000. Refer to the above Scenario. For this economy, private saving amounts to 1) $22.000. 2) $18.000. O 3) $15.000. 4) $37,000.arrow_forwardChange in business inventories Compensation of employees Corporate profits Durable goods Exports Social Security taxes Transfer payments Fixed investment Government spending Imports Net interest Nondurable goods Personal taxes Rental income Services In Exhibit 5-10, compute personal income (PI). Which of the following is correct? O $7,110 billion. O $7,410 billion. $6,740 billion. $7,760 billion. $6.780 billion. 50 5,400 700 600 100 360 300 950 800 150 500 2,000 1,000 200 4,000arrow_forward
- If in some year nominal GDP was $40 billion and the GDP deflator was 70, what was real GDP? O $30.0 billion O $110.0 billion O $57.1 billion O $175,0 billionarrow_forwardRefer to the table. Equilibrium GDP is: Government Purchases Consumption (after taxes) $-20 Gross Investment Net Exports Real GDP $15 $10 10 $+5 $0 0. +5 15 10 20 10 +5 15 40 40 10 +5 15 70 60 10 +5 15 100 80 10 +5 15 130 100 10 +5 15 160 $40. O $70. O $100. O $130. $160 O O O O Oarrow_forwardRefer to the table given. Assume that this economy produces only two goods Good X and Good Y. The value for this economy's nominal GDP in year 3 is TL. Production (units) Prices (TL) Year 1 Year 2 Year 3 Year 1 Year 2 Year 3 Good X 60 80 100 1.00 1.00 1.40 Good Y 100 110 130 0.80 0.90 1.00 O 270 222 O 204 250arrow_forward
- Government purchases 30 Consumption 100 Investment spending Exports Imports Wages Interest billions of dollars ($) O $370 billion. 50 O $160 billion. O $130 billion. $310 billion. 40 Government purchases 60 20 190 130 According to the information in table, GDP =arrow_forwardRefer to the Table below. Assume that this economy produces only two goods Good X and Good Y. The value for this economy's nominal GDP in year 1 is Production Prices Year 1 Year 2 Year 3 Year 1 Year Good X 50 50 60 $1.00 $1.20 Good Y 100 120 140 $0.60 $0.60 130 O 110 140 O 160arrow_forwardProduction Prices Year1 Year 2 Year 3 Year 1 Year 2 Year Good X 50 50 60 $1.00 $1.20 $1.20 Good Y 100 120 140 $0.60 $0.60 $1.00 Assume that this economy produces only two goods Good X and Good Y. If year 1 is the base year, the value for this economy's GDP deflator in year 2 is Select one: O a. 92.4 O b. 105 O . 84.5 O d. 108.2arrow_forward
- 14. In 2020 consumption (Ci) for selected countries was as follows Jordan 2.5 billion $, USA 100 billion $, Canada 50 billion $, France 40 billion $ Qatar 10 billion $. and Russia 70 billion $. for the same year Income (Yi) was: Jordan 12 billion $, USA 900 billion $, Canada 700 billion $, France 500 billion $ Qatar 60 billion $. and Russia 100 billion $. This data is * Variable in time but change over countries O fixed in time and fixed in countries Fixed in time but change over countries Variable in time but fixed in countries none of the choices are truearrow_forwardProduction Prices Year1 Year 2 Year 3 Year 1 Year 2 Year 3 Good X50 50 60 $1.00 $1.20 $1.20 Good Y 100 120 140 $06 $0.60 $1.00 Assume that this economy produces only two goods Good X and Good Y. If year 2 is the base year, the value for this economy's GDP deflator in year 3 is Select one: O a. 135.9 O b. 73.6 O . 147.2 O d. 67.9 O e. 117.8arrow_forwardWhich one of the following is TRUE? Select one: O a. Our productive capacity declines when net investment is less than zero. O b. Negative net investment occurs when exports are less than imports. O c. Net investment is negative when gross investment is greater than depreciation. O d. Negative net investment occurs when imports are less than exports.arrow_forward
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