MindTap Economics, 1 Term (6 Months) Printed Access Card for Mceachern's ECON MACRO, 6th
6th Edition
ISBN: 9781337915595
Author: William A. McEachern
Publisher: Cengage Learning
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Question
Chapter 6, Problem 3P
Sub-part
A
To determine
The value of Gross private domestic investment.
Concept Introduction:
Gross private domestic investment: It is the measure of physical investment used in calculating
Sub-part
B
To determine
The value of net investment.
Concept Introduction:
Gross private domestic investment: It is the measure of physical investment used in calculating gross domestic product (GDP).
Sub-part
C
To determine
Whether intermediate goods are counted in gross investment.
Concept Introduction:
Gross private domestic investment: It is the measure of physical investment used in calculating gross domestic product (GDP).
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Given the following data, answer questions a through c.
Billions of dollars
New Residential Construction
$500
Purchase of existing homes
$250
Sales value of newly issued stocks and bonds
$600
New physical capital
$700
Depreciation
$200
New Intellectual property
$100
Household purchases of new furniture
$50
Net change in firms’ inventories
$100
Production of new intermediate goods
$700
What is the value gross private domestic investment?
Answer:
What is the value of net investment?
Are any intermediate goods counted in gross investment?
Production
Import
Export
Consumption
Price
Good A
68
68
57
Good B
68
68
40
Good C
86
86
87
Good D
74
74
37
Given the information above, calculate the following for 2018:
(a) Total Consumption Expenditure
(b) Net Export
(c) Gross Domestic Product
..
3) The value for net exports in billions of dollars is
A) -200.
B)-150
C) 50.
D) 250.
4) The value for gross domestic product in billions of dollars is
A) 2,900.
B) 3140
C) 3,440.
D) 3,650.
Chapter 6 Solutions
MindTap Economics, 1 Term (6 Months) Printed Access Card for Mceachern's ECON MACRO, 6th
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