MACROECONOMICS (LOOSELEAF)-PACKAGE
13th Edition
ISBN: 9781337492317
Author: Baumol
Publisher: CENGAGE L
expand_more
expand_more
format_list_bulleted
Question
Chapter 8.A, Problem 3TY
To determine
To calculate: The
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
5. You are given the following information about an economy: $millions
GDP at Market Prices 1,,669.4 Imports 290.5 Gross Domestic Capital Formation 48.7 Income accruing to the Public Sector 39.0 Retained Business Earnings 75.9 Exports 273.4 Subsidies 16.8 Factor Payments from Abroad 10.0…
4. Do you think that incomes and purchasing power are related? Are companies required to pay their employees more to compensate for higher costs of living?
3. Consider the following table showing the breakdown of GDP (in billions) for China.
GDP Category
Wages and Salaries
Consumption
Investment
Depreciation
Government
Amount (in billions)
1000
1700
700
50
100
Expenditure
Тахes
300
Еxports
Imports
Income receipts from
rest of the world
Income payment to rest
50
40
10
50
of the world
What are net exports for China?
4. Suppose that GDP in Japan is 1030 and then grows to 1160 (all numbers in billions)
What is the growth rate of GDP in Japan?
Chapter 8 Solutions
MACROECONOMICS (LOOSELEAF)-PACKAGE
Knowledge Booster
Similar questions
- 5. You are given the following information about an economy: $millions GDP at Market Prices 1,,669.4 Imports 290.5 Gross Domestic Capital Formation 48.7 Income accruing to the Public Sector 39.0 Retained Business Earnings 75.9 Exports 273.4 Subsidies 16.8 Factor Payments from Abroad 10.0…arrow_forward8. KEY QUESTION Below is a list of domestic output and na-tional income figures for a certain year. All figures are in billions. The questions that follow ask you to determine the major national income measures by both the expenditures and the income approaches. The results you obtain with the different methods should be the same. Personal consumption expenditures $245 Net foreign factor income 4 Transfer payments 12 Rents 14 Statistical discrepancy 8 Consumption of fixed capital (depreciation) 27 Social Security contributions 20 Interest 13 Proprietors’ income 33 Net exports 11 Dividends 16 Compensation of employees 223 Taxes on production and imports 18 Undistributed corporate profits 21 Personal taxes 26 Corporate income taxes 19 Corporate profits 56 Government purchases 72 Net private domestic investment 33Net private domestic investment 33 Personal saving 20a. Using the above data, determine GDP by both the ex-penditures and the income approaches. Then determine NDP. b. Now…arrow_forwardProblem 1 Given the following table: $Billions 40 Depreciation Receipts of factor income from the rest of the world Government purchases Imports Payments of factor income to the rest of the world Net private domestic investment Personal income taxes 30 100 50 50 200 120 Personal consumption expenditures Dividends 600 20 Exports Amount of national income not going to households 60 20 Calculate: 1- GDP 2- GNP 3- NNP 4- National Income 5- Personal Income 6- Disposable Incomearrow_forward
- v Question Completion Status: QUESTION 1 Refer to the table (all figures in billions of dollars). The gross domestic product (GDP) for this economy is #3 Items Amount (i) (1) Personal Taxes $40 (2) Social Security Contributions $15 (3) Taxes on Production and Imports $20 (4) Corporate Income Taxes $40 (5) Transfer Payments $22 (6) U.S. Exports $24 (7) Undistributed Corporate Profits $35 (8) Govemment Purchases 06$ (9) Gross Private Domestic Investment $75 (10) U.S. Imports $22 (11) Personal Consumption Expenditures $250 (12) Consumption of Fixed Capital $25 (13) Net Foreign Factor Income $10 (14) Statistical Discrepancy $0 O $390 O $402 O $417 O $422 O $492arrow_forward6. Expenditures and Income Approaches Consumption Expenditures Wages Taxes on Production and Imports Government Purchases Statistical Discrepancy Imports Undistributed Corporate Profits Rent Proprietor's Exports Dividends Depreciation Income Interest Gross Private Domestic Investment Corporate Income Taxes Corporate Profits Net Foreign Factor Income $69000 $76000 $16000 $58000 $11000 $47000 $14000 $42000 $15000 $34000 $22000 $24000 $31000 $41000 $18000 $54000 $17000 Complete parts a and b. a. Given the numbers above, solve for Real GDP using the expenditures approach. Given the numbers above, solve for the National Income (NI). b.arrow_forward1. Explain with your own words the definition of Gross Domestic Product. 2. How does the growth rate of real GDP contribute to an improved standard of living? 3. Use the following data to answer the question. The table lists some macroeconomic data for the United States in 2008. Item Billions of dollars Wages paid to labor 8,000Consumption expenditure 10,000Net operating surplus 3,200Investment 2,000Government expenditure 2,800Net exports –700Depreciation 1,800 3a) Calculate U.S. GDP in 2008.arrow_forward
- 6. Use the following table to answer the question: Items Cash receipts from farm marketing Receipts of government payments Other income from farm sources Production expenses Value of real estate assets Items Value of non-real estate assets Financial assets Liabilities a. What is the Gross Farm Income? b. What is the Net Farm Income? Dollar $750,000 $150,000 $100,000 $400,000 $10 million Dollar $2 million $4 million $9 millionarrow_forwardHelp me pleasearrow_forward4. You are given the following information about an economy: Smillions GDP at Market Prices Imports Gross Domestic Capital Formation Income accruing to the Public Sector Retained Business Earnings 1,,669.4 290.5 48.7 39.0 75.9 Exports Subsidies Factor Payments from Abroad Capital Consumption Allowance Income Payments to Foreigners 273.4 16.8 10.0 10.5 19.2 355.6 Direct Taxes Public Sector Consumption Expenditure 490.1 Indirect Taxes 297.3 Transfer Payments 25.7 Derive the following: (i) (ii) (iii) (iv) (v) National Income Net Investment Personal Income Disposable Income Household Consumption Expenditurearrow_forward
- Billions of Dollars 6,500 1,900 1,200 Consumption Gross private domestic investment Government spending less transfer payments Imports Exports Depredation Indirect business taxes and transfers 600 500 1,500 750 17) Using the above table, the GDP is (in billions of dollars) A) 10,200. B) 8,200. C) 8,900. D) 9,500.arrow_forwardITEMS RM (millions) Agriculture 18,000 Mining 12,000 Manufacturing 22,000 Constructions 8,000 Electricity, gas and water 1,800 Transportation and communication 900 Indirect tax 800 Subsidies 700 Government services 1,700 Other services 900 Capital consumption 500 Income received from abroad 750 Income paid to abroad 450 Based on the table above, calculate: a) Gross Domestic Product (GDP) at market price. b) Gross Domestic Product (GDP) at factor cost. c) Gross National Product (GNP) at factor cost. d) national income. e) What approach did you use to make calculation in question (i)? b) The table below shows national income data for a country R. Year Nominal GNP (RM million) Price Index 2017 16 400 100 2018 18 800 108 i) Calculate real income for 2017 and 2018. ii) How much growth rate from year 2017 to 2018?arrow_forward2. Activities included (and not included) in the calculation ofGDP The gross domestic product (GDP) of the United States is defined as the all in a given period of time. Based on this definition, indicate which of the following transactions will be included in (that is, directly increase) the GDP of the United States in 2020. 2020 GDP Scenario Included Excluded An accountant starts a client's 2020 tax return on April 14, 2021, finishing it just before midnight on April 15, 2021. Calculo, a U.S. electronics company, produces a calculator at a plant in Indonesia on March 11, 2020. Calculo imports the calculator into the United States on May 29, 202o. Chocolate Express, a Swiss chocolate company, produces a chocolate bar at a plant in Illinois on December 14, 2020. An elementary school student buys the chocolate bar on December 24. Awake Cafe, a U.S. coffee company, produces a latte at its location in Minneapolis on January 6, 2020. It sells the latte to a customer immediately. Graincorp,…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Essentials of Economics (MindTap Course List)EconomicsISBN:9781337091992Author:N. Gregory MankiwPublisher:Cengage Learning
Brief Principles of Macroeconomics (MindTap Cours...EconomicsISBN:9781337091985Author:N. Gregory MankiwPublisher:Cengage Learning
Essentials of Economics (MindTap Course List)
Economics
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Brief Principles of Macroeconomics (MindTap Cours...
Economics
ISBN:9781337091985
Author:N. Gregory Mankiw
Publisher:Cengage Learning