MyEconLab Canvas with eText for Macroeconomics with Custom Integration for University of South Florida -- Standalone Access Card, 1/e
1st Edition
ISBN: 9781323464823
Author: Hubbard
Publisher: Pearson Education
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Question
Chapter 8, Problem 8.1.8PA
To determine
Components of
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The Commerce Department reported that retail sales increased 1.3 percent in June. Net exports were up 0.8 percent in the first quarter and inventories held by businesses rose by 0.3 percent in June. Total sales by businesses rose 0.3 percent.
Source: Commerce Department, 2013
Does the statement that total sales by businesses were up 0.3 percent mean that GDP increased by 0.3 percent?
The statement that total sales by businesses were up 0.3 percent means that GDP ______ because ______.
A.
did not change by 0.3 percent;
GDP measures production of all final goods and services and "total sales by businesses" includes final and intermediate goods and services
B.
increased by 0.3 percent;
GDP is a record of the value of all production
C.
decreased by 0.3 percent;
"total sales by businesses" are sales of intermediate goods and services
D.
increased by less than 0.3 percent;…
The table below details the composition of an economy’s GDP by spending category.
Category
Expenditures (billions of dollars)
Fixed business investment
$3,550.00
Durable goods
$2,600.00
Exports
$600.00
Federal government purchases
$1,250.00
New home construction
$1,000.00
Imports
$720.00
Change in inventories
$-300.00
Nondurable goods
$4,400.00
Services
$9,350.00
State and local government purchases
$2,150.00
Use the information in the table to calculate the following:a) Consumption: $ billionb) Investment: $ billionc) Government: $ billiond) Net exports: $ billione) GDP: $ billion
Part 2
Think about the different components of GDP and how they change with the business cycle. Which component of consumption fluctuates the most?Choose one:A. nondurable goodsB. durable goodsC. new home constructionD. services
Part 3
Consider the net exports component of GDP. Suppose exports increase by $100 billion and…
The table below details the composition of an economy’s GDP by spending category. Category Expenditures (billions of dollars) Fixed business investment $3,250.00 Durable goods $2,100.00 Exports $700.00 Federal government purchases $1,600.00 New home construction $1,000.00 Imports $840.00 Change in inventories $-250.00 Nondurable goods $5,200.00 Services $8,250.00 State and local government purchases $2,550.00 Use the information in the table to calculate the following:
a) Consumption: $ billionb) Investment: $ billionc) Government: $ billiond) Net exports: $ billione) GDP: $ billion
Chapter 8 Solutions
MyEconLab Canvas with eText for Macroeconomics with Custom Integration for University of South Florida -- Standalone Access Card, 1/e
Ch. 8 - Prob. 8.1.1RQCh. 8 - Prob. 8.1.2RQCh. 8 - Prob. 8.1.3RQCh. 8 - Prob. 8.1.4RQCh. 8 - Prob. 8.1.5RQCh. 8 - Prob. 8.1.6PACh. 8 - Prob. 8.1.7PACh. 8 - Prob. 8.1.8PACh. 8 - Prob. 8.1.9PACh. 8 - Prob. 8.1.10PA
Ch. 8 - Prob. 8.1.11PACh. 8 - Prob. 8.1.12PACh. 8 - Prob. 8.1.13PACh. 8 - Prob. 8.1.14PACh. 8 - Prob. 8.2.1RQCh. 8 - Prob. 8.2.2RQCh. 8 - Prob. 8.2.3RQCh. 8 - Prob. 8.2.4PACh. 8 - Prob. 8.2.5PACh. 8 - Prob. 8.2.6PACh. 8 - Prob. 8.2.7PACh. 8 - Prob. 8.2.8PACh. 8 - Prob. 8.2.9PACh. 8 - Prob. 8.2.10PACh. 8 - Prob. 8.3.1RQCh. 8 - Prob. 8.3.2RQCh. 8 - Prob. 8.3.3RQCh. 8 - Prob. 8.3.4PACh. 8 - Prob. 8.3.5PACh. 8 - Prob. 8.3.6PACh. 8 - Prob. 8.3.7PACh. 8 - Prob. 8.3.8PACh. 8 - Prob. 8.3.9PACh. 8 - Prob. 8.3.10PACh. 8 - Prob. 8.4.1RQCh. 8 - Prob. 8.4.2RQCh. 8 - Prob. 8.4.3RQCh. 8 - Prob. 8.4.4PACh. 8 - Prob. 8.4.5PACh. 8 - Prob. 8.4.6PACh. 8 - Prob. 8.4.7PACh. 8 - Briefly discuss the accuracy of the following...Ch. 8 - Prob. 8.1RDECh. 8 - Prob. 8.2RDECh. 8 - Prob. 8.3RDECh. 8 - Prob. 8.4RDECh. 8 - Prob. 8.5RDECh. 8 - Prob. 8.6RDECh. 8 - Prob. 8.7RDE
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