1. GDE for 2015. 2. GDE for 2016. 3. GDP for 2020. 4. GDE growth for 2016 5. GDP growth for 2020 Table 1: Expenditure on GDP (constant 2010 prices, R million) Final consumption expenditure Gross capital formation Exports of Imports of Change in goods and goods and services Gross fixed General Year Households capital formation inventories services Government 2015 1853657 614957 634540 20917 909345 966025 2016 1864436 628434 612111 -9653 912546 928730 2017 1902851 629712 618516 3189 905898 937740 2018 1937396 641512 609614 -5440 929792 968651 2019 1957656 651103 603928 -9130 906445 963940 2020 1851300 654482 498530 -89797 813265 803784 Source: StatsSA (2021) Question 2 2.1 Use the 2020 information provided in the table and show the determination of the value of total expenditure and of income using the 45-degree model. 2.2 With following values, c 0,7, t 0,41 and m = 0,86 use the multiplier and calculate the potential impact of the President's R791 bn infrastructure investment plan on the value of GDP in 2021. Question 3 In the U.S., President Biden recently approved a $1.9 trillion stimulus package aimed at getting the economy going. U.S. workers who earned less than $ 75 000 a year in 2019 each received a $1 400 stimulus check over the past few weeks. Use the IS-LM-BP model to explain what this can mean for the levels of output/income and interest rates in South Africa. Draw the graph and explain the complete chain reaction.
1. GDE for 2015. 2. GDE for 2016. 3. GDP for 2020. 4. GDE growth for 2016 5. GDP growth for 2020 Table 1: Expenditure on GDP (constant 2010 prices, R million) Final consumption expenditure Gross capital formation Exports of Imports of Change in goods and goods and services Gross fixed General Year Households capital formation inventories services Government 2015 1853657 614957 634540 20917 909345 966025 2016 1864436 628434 612111 -9653 912546 928730 2017 1902851 629712 618516 3189 905898 937740 2018 1937396 641512 609614 -5440 929792 968651 2019 1957656 651103 603928 -9130 906445 963940 2020 1851300 654482 498530 -89797 813265 803784 Source: StatsSA (2021) Question 2 2.1 Use the 2020 information provided in the table and show the determination of the value of total expenditure and of income using the 45-degree model. 2.2 With following values, c 0,7, t 0,41 and m = 0,86 use the multiplier and calculate the potential impact of the President's R791 bn infrastructure investment plan on the value of GDP in 2021. Question 3 In the U.S., President Biden recently approved a $1.9 trillion stimulus package aimed at getting the economy going. U.S. workers who earned less than $ 75 000 a year in 2019 each received a $1 400 stimulus check over the past few weeks. Use the IS-LM-BP model to explain what this can mean for the levels of output/income and interest rates in South Africa. Draw the graph and explain the complete chain reaction.
Chapter6: Tracking The U.s. Economy
Section: Chapter Questions
Problem 1.2P
Related questions
Question
Question 1 is answered..so answer remaining questions
Transcribed Image Text:Question 1
Use Table 1 to calculate the following (show your calculations):
1. GDE for 2015.
2. GDE for 2016.
3. GDP for 2020.
4. GDE growth for 2016
5. GDP growth for 2020
Table 1: Expenditure on GDP (constant 2010 prices, R million)
Final consumption expenditure Gross capital formation
Imports of
goods and
services
Exports of
Gross fixed
Change in goods and
services
General
Year Households
capital
Government
inventories
formation
2015
1853657
614957
634540
20917
909345
966025
2016
1864436
628434
612111
-9653
912546
928730
2017
1902851
629712
618516
3189
905898
937740
2018
1937396
641512
609614
-5440
929792
968651
2019
1957656
651103
603928
-9130
906445
963940
2020
1851300
654482
498530
-89797
813265
803784
Source: StatsSA (2021)
Question 2
2.1
Use the 2020 information provided in the table and show the determination of the value of
total expenditure and of income using the 45-degree model.
2.2
With following values, c 0,7, t 0,41 and m 0,86 use the multiplier and calculate the
potential impact of the President's R791 bn infrastructure investment plan on the value of
GDP in 2021.
Question 3
In the U.S., President Biden recently approved a $1.9 trillion stimulus package aimed at getting the
economy going. U.S. workers who earned less than $ 75 000 a year in 2019 each received a $1 400
stimulus check over the past few weeks.
Use the IS-LM-BP model to explain what this can mean for the levels of output/income and interest
rates in South Africa. Draw the graph and explain the complete chain reaction.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 3 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
Brief Principles of Macroeconomics (MindTap Cours…
Economics
ISBN:
9781337091985
Author:
N. Gregory Mankiw
Publisher:
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
Essentials of Economics (MindTap Course List)
Economics
ISBN:
9781337091992
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Principles of Economics 2e
Economics
ISBN:
9781947172364
Author:
Steven A. Greenlaw; David Shapiro
Publisher:
OpenStax
Economics: Private and Public Choice (MindTap Cou…
Economics
ISBN:
9781305506725
Author:
James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:
Cengage Learning
Macroeconomics: Private and Public Choice (MindTa…
Economics
ISBN:
9781305506756
Author:
James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:
Cengage Learning