EP ECONOMICS,AP EDITION-CONNECT ACCESS
20th Edition
ISBN: 9780021403455
Author: McConnell
Publisher: MCGRAW-HILL HIGHER EDUCATION
expand_more
expand_more
format_list_bulleted
Question
Chapter 25, Problem 5DQ
To determine
The economy’s output.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
(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.
Refer 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 O
Change 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
4,000
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
- 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)arrow_forwardWhat 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 32arrow_forward$620 Personal Consumption Expenditures Saving 50 200 Government Purchases 750 Net Domestic Product Statistical Discrepancy 180 Gross Investment 780 National Income 220 Exports Imports 240 760 Personal Income Refer to the accompanying data (all figures in billions of dollars). The net investment for this economy is O 1) $200. 2) $20. 3) $230. 4) -$20.arrow_forward
- Suppose consumption function is specified as C= $200 + 0.75Ya planned investment is $600, net taxes are $400, and government spending totals $500 of a hypothetical economy in 2020. Find algebraically: LO 3 A. The equilibrium level of aggregate output by equating aggregate output and planned aggregate expenditure. B. Consumption when aggregate output is at the equilibrium level. C. Saving when aggregate output is at the equilibrium level. D. Establish that leakages equal injections at the equilibrium level of aggregate output.arrow_forward7 Real expenditure in thousands of dollars 6 5 3 2 0 1 Reference: Figure 10-5 O 0.25 O.0.50 2 O 0.75 Refer to the graph above. The mpe equals: O 1.00 3 4 5 6 7 Real income in thousands of dollars AE curvearrow_forwardGovernment purchases 30 Consumption 100 Investment spending Exports Imports Wages Interest billions of dollars ($) 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_forward
- 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_forwardIn a small economy, consumption spending is $7,500, government purchases are $2,200, gross investment is $500, exports are $2,100, and imports are $3,000. What is gross domestic product? $9,300 O $15,300 O $11,100 O $12,300arrow_forwardWhich of the following changes in personal income tax would lead to the smallest increase in consumption? O a. O b. a $15 000 decrease in taxes, if MPC equals 0.6 O c. a $30 000 decrease in taxes, if MPC equals 0.25 Oe. a $20 000 decrease in taxes, if MPC equals 0.5 O d. a $12 000 decrease in taxes, if MPC equals 0.75 a $10 000 decrease in taxes, if MPC equals 0.2arrow_forward
- QUESTION 1 Below is the data for an economy in the year 2016. Gross Domestic Product = $25,000 Consumption expenditure $15,000 Government purchases $4,000 Exports $1,500 Imports = $2,500 %3D The investment expenditure for this economy would be? O $10,000 O $6,000 O $7,000 O $2,000arrow_forwardIf real GDP is $2200 billion, the GDP deflator is 110, nominal net exports are $100 billion, nominal investment is $200 billion, and nominal government expenditures are $400 billion, what is nominal consumption? 1) $1300 2) $1500 3) $1520 O 4) $1720arrow_forwardSuppose the information in the following table is for a simple economy that produces only the following four goods: shoes, hamburgers, shirts, and cotton. Further, assume that all of the cotton is used to produce shirts. Product Shoes Hamburgers Shirts Cotton 2009, then the nominal GDP for 2017 equals: O 18672.5 O 8250 O8750 2009 Statistics Quantity 100 85 60 11,000 O 10422.5 Price $52.00 3.00 35.00 0.85 2016 Statistics Quantity 115 120 55 10,000 Price $65.00 3.00 30.00 0.70 2017 Statistics Quantity 110 135 75 11,000 Price $70.00 3.50 30.00 0.75 If the base year is the yeararrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Exploring EconomicsEconomicsISBN:9781544336329Author:Robert L. SextonPublisher:SAGE Publications, Inc
Exploring Economics
Economics
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:SAGE Publications, Inc