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.

The following table shows data on personal consumption expenditures, gross private domestic investment, exports, imports, and government consumption expenditures and gross investment for the United States in 2007, as published by the Bureau of Economic Analysis. All figures are in billions of dollars. Fill in the missing cells in the following table to calculate GDP. Components   Personal Consumption Expenditures (CC) $9,734.2 Gross Private Domestic Investment (II) $2,125.4 Exports (XX) $1,643 Imports (MM) $2,351 Net exports of goods and services (X−MX−M)   Government Consumption Expenditures and Gross Investment (GG) $2,689.8 Gross domestic product (GDP)     This method of calculating GDP, which involves summing the       , is called the               approach.

Below is a list of domestic output and national 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. Category Billions Category Personal consumption expenditures $285 Net exports Billions 11 Net foreign factor income 4 Dividends 16 Transfer payments 12 Compensation of employees 263 Rents 14 Taxes on production and imports 18 Statistical discrepancy 8 Undistributed corporate profits 21 Consumption of fixed capital (depreciation) 27 Personal taxes 26 Social Security contributions 20 Corporate income taxes 19 Interest 13 Corporate profits 56 Proprietors' income 43 Government purchases 82 Personal saving 30 Net private domestic investment 33 Instructions: Enter your answers as a whole number. a. Using the above data, determine GDP by both the expenditures approach and the income approach. Then determine NDP. GDP using the expenditures approach = $…

If in some country personal consumption expenditures in a specific year are $50 billion, purchases of stocks and bonds are $30 billion, net exports are – (negative) $10 billion, government purchases are $30 billion, sales of second-hand items are $8 billion, and gross investment is $35 billion, what is the country’s GDP for the year?   Select one: a. $125 billion b. $85 billion c. $95 billion d. $105 billion

Part A. The income and expenditure approaches to measuring a nation’s GDP can be combined using the circular flow model. Categorize each flow in the following table as part of either aggregate demand or national income.   Part B. Fill in the blank with the choices in parentheses While national income and domestic product must be equal, income must also equal expenditure for each of the six sectors in the circular flow diagram: firms, consumers, government, financial system, investors, and the “rest of the world.”   For example, the amount of __________(options for blank: disposable income, investment spending, saving, taxes) flowing into the financial system sector must equal the amount of ____________ (saving, consumption plus savings, transfers plus government purchases, investment spending) flowing out of this sector.

Explain some reasons why consumption spending and gross private domestic investment spending are so important.  What determinants do they have in common?

GDP Problem. Given the following information, compute GDP by either the Expenditures or the Income approach.  [You do not have to compute GDP both ways.]  Name which of the two approaches you are using, and identify all the accounts (e.g., “All profits” or “Gross Private Investment”)  you use in your computation of GDP.         All profits $ 800               Government purchases of goods & services    300              Imports      50        Government transfer payments   250                   Exports  50              Gross private investment     500      Rent   20            Wages, salaries      5000      Personal saving    1600      Depreciation   60              Net foreign income         0           Personal consumption expenditures     5200      Taxes on production & tariffs    40               Sales of stocks and bonds  1200           Interest   80                                               IDENTIFY:    ______________________ APPROACH USED  ACCOUNT…

The annual output and prices of a three-good economy are shown in the table below. Quantity of Goods Year 1 Price Year 1 $6 $4 $3 Good Quarts of ice cream Bottles of shampoo Jars of peanut butter Instructions: Enter your answers as a whole number. a. What was the economy's nominal GDP in year 1? $ b. What was its nominal GDP in year 2? 3 1 3 Price Year 2 $6 $4 $3 Quantity of Goods Year 2 5 2 2

1.1. What is the US GDP for the first quarter and second quarter of 2020?  What is the personal consumption expenditures for the first quarter and second quarter of 2020?

Why do economists include only final goods and services in measuring GDP for a particular year? Why don't they include the value of used goods, i.e. cars, furniture, etc., bought and sold? Define net exports. Explain how US exports and imports each affect domestic production. How are net exports determined? Explain how net exports might be a negative amount. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.