1. Calculate GDP using the expenditures approach for year 1 and year 2. Explain your rationale withnumbers. In other words, you must show the following;▪ What is Personal Consumption Expenditures in year 1 and 2▪ What is Gross Private Domestic Investment in year 1 and 2▪ What is Government Purchases of Goods and Services in year 1 and year 2What is Net Exports in year 1 and year 2▪ What is GDP in year 1 and year 22. In percentage terms, which of the 4 categories of spending changed more from year 1 to year 2. Inother words, looking at the results from year 2, which of the categories experienced the highestpercentage change. Explain your rationale with numbers.3. What was the percentage change in GDP? Explain your rationale with numbers. Use 2 decimal points.4.In your own words, explain why GDP is such an important metric that is used to understand theeconomic performance of nations. How does looking at GDP per capita help when comparingeconomic performance of different nations? (Table 1) National Income Accounting 1st year dataConsumption of Durable GoodsConsumption of Nondurable GoodsCompensation of EmployeesConsumption of ServicesFixed Residential InvestmentCorporate ProfitsFixed Nonresidential InvestmentConsumption of Fixed CapitalChange in InventoriesGovernment Purchases of Goods and ServicesExportsImports$1,250,000$889,000$865,000$2,350,000$645,000$1,150,000$730,000$90,400$125,000$940,000$250,00045$360,000(Table 2) National Income Accounting 2nd year dataConsumption of Durable GoodsConsumption of Nondurable GoodsCompensation of EmployeesConsumption of ServicesFixed Residential InvestmentCorporate ProfitsFixed Nonresidential InvestmentConsumption of Fixed CapitalChange in InventoriesGovernment Purchases of Goods and ServicesExportsImports$1,437,500$1,022,350$994,750$2,702,500$741,750$1,322,500$839,500$103,960$143,750$987,000$262,500$378,000Windows

Personal Consumption Expenditures (PCE)Year 1: $1,250,000 (Durable goods) + $889,000 (Nondurable…

1. Calculate GDP using the expenditures approach for year 1 and year 2. Explain your rationale with numbers. In other words, you must show the following; • What is Personal Consumption Expenditures in year 1 and 2 • What is Gross Private Domestic Investment in year 1 and 2 • What is Government Purchases of Goods and Services in year 1 and year 2 • What is Net Exports in year 1 and year 2 • What is GDP in year 1 and year 2 2. In percentage terms, which of the 4 categories of spending changed more from year 1 to year 2. In other words, looking at the results from year 2, which of the categories experienced the highest percentage change. Explain your rationale with numbers. 3. What was the percentage change in GDP? Explain your rationale with numbers. Use 2 decimal points. In your own words, explain why GDP is such an important metric that is used to understand the economic performance of nations. How does looking at GDP per capita help when comparing economic performance of different nations? 4.

1. Calculate GDP using the expenditures approach for year 1 and year 2. Explain your rationale with numbers. In other words, you must show the following; • What is Personal Consumption Expenditures in year 1 and 2 • What is Gross Private Domestic Investment in year 1 and 2 • What is Government Purchases of Goods and Services in year 1 and year 2 • What is Net Exports in year 1 and year 2 • What is GDP in year 1 and year 2 2. In percentage terms, which of the 4 categories of spending changed more from year 1 to year 2. In other words, looking at the results from year 2, which of the categories experienced the highest percentage change. Explain your rationale with numbers. 3. What was the percentage change in GDP? Explain your rationale with numbers. Use 2 decimal points. In your own words, explain why GDP is such an important metric that is used to understand the economic performance of nations. How does looking at GDP per capita help when comparing economic performance of different nations? 4.

Economics For Today

10th Edition

ISBN:9781337613040

Author:Tucker

Publisher:Tucker

Chapter15: Gross Domestic Product

Section: Chapter Questions

Problem 7SQP

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