2) The following data summarize the expenditures for the country of XYZ during 2003 in millions of alphabet, the currency of country XYZ.   Gross Private Domestic Investment $300 Business Fixed Investment $200 Change in Inventories $100 Exports $200 Imports $200 Personal Consumption Expenditures $800 Government Consumption Expenditures and Gross Investment $500 Statistical Discrepancy $10 Depreciation Expenditures $50   Calculate net exports Calculate GDP Calculate national income Assume that the GDP deflator is 120 and calculate real GDP for 2003.

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 = $…

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V2     This question tests your knowledge of what activities are included in calculating GDP. Decide for each item whether it is part of GDP and, if so, to which expenditure category it belongs.   Purchase of electricity by a business is (refer to the scenario above):   Select one:   a. Not counted in GDP   b. Counted as part of consumption   c. Counted as part of investment   d. Counted as part of government   e. Counted as part of net exports

NATIONAL INCOME DATA (in current prices) 1992 III Personal consumption expenditures Gross private domestic investment Government purchases of goods and services 01. Based on this table, the Gross Domestic Product is $ (in billions of dollars) Exports Imports Capital consumption allowance (depreciation) Source: Survey of Current Business, Vol. 72, Number 10, (October 1992), p. 8, 10 billion. 4,105.0 776.9 1,122.5 626.8 664.2 697.3

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 following table provides data for an economy in a certain year: Consumption expenditures Imports $ 1,000 600 Government purchases of goods and services Construction of new homes and apartments Sales of existing homes and apartments 700 500 600 Exports Government payments to retirees Household purchases of durable goods Beginning-of-year inventory End-of-year inventory Business fixed investment 500 200 300 500 600 300 Given the data, compute the investment component of GDP.

Problem Using the following national income accounting data, calculate GDP in this country