EP ECONOMICS,AP EDITION-CONNECT ACCESS
20th Edition
ISBN: 9780021403455
Author: McConnell
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Question
Chapter 25, Problem 7DQ
To determine
Gross private domestic investment and gross domestic product .
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Students 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
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
If 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) $1720
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
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Similar questions
- 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 Oarrow_forward(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.arrow_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
- 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_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_forwardADVANCED ANALYSIS Assume that the consumption schedule for a private open economy is such that consumption C= 60 + 08Y Assume further that planned investment lo government spending G, and net exports X are independent of the level of real GDP nd constant at lg 40, G= 0, and Xp= 10. Recall also that, in equilibrium, the real output produced () is equal to aggregate expenditures: Y= C+lg+ G+ Xp Instructions: Round your answers to the nearest whole number. a. Calculate the equilibrium level of income or real GDP for this economy S 1050 b. What happens to equilibrium Yif lg changes to 20? 950 What does this outcome reveal about the size of the multiplier? Multiplier=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_forwardGDP $0 1 2 Consumption $0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 D 8 4.5 As shown in Exhibit 9-1, if equilibrium GDP is $5 trillion, then the total of investment, government spending, and net exports is: 8 4.5 As shown in Exhibit 9-1, if equilibrium GDP is $5 trillion, then the total of investme O $1 trillion. $2 trillion. O $3 trillion. O $4 trillion. $6 trillion. 4 Aggregate Expenditures 6 Unplanned inventoryarrow_forwardTable 7-3 (in $ billion) consumption $1,100.00 %3D inventory investment = $460.00 purchased of new capital goods = $560.00 government purchases = $300.00 %3D exports = $20.00 %3D imports $33.00 %D purchased of new residential housing = $58.00 %3D Refer to Table 7-3, GDP equals O $2,165.00 O $2,432.00 O $2,465.00 O $2,425.00arrow_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_forward100 gaia 270 200 130 60 450 100 200 300 Aggregate income (Y) Figure 8.3 ?Refer to Figure 8.3. Which of the following statements is true „Aggregate saving is negative for all income levels below $400 a O For all aggregate income levels above $200, aggregate consumption is greater than aggregate income b O If consumption is the only expenditure, this economy would be in equilibrium at an aggregate income level of c O $300 Saving is negative at all income levels below $200 d O Aggregate consumption (C)arrow_forwardIntended Spending (billions) $2,300 $2,100 $1,900 $1,700 $1,500 The marginal propensity to consume is 01 O 19/21. O 2/3. O 5/7. 45% $1,500 $1,800 $2,100 $2,400 $2,700 Gross Domestic Product (billions) impossible to tell from the graph. Consumption plus investment Consumptionarrow_forward
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