5. If nominal GDP was $11,500 billion in 2003 and the price level in 2003 was 111.6, then real GDP would havebeen approximatelya. $9,795 billion.b. $10,305 billion.c. $10,485 billion.d. $9,750 billion.1

here we calculate the real GDP and choose the correct option below which are as follow-

Answered: 5. If nominal GDP was $11,500 billion…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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12. If Consumption equal $45M, Government spending equals $8M, Investment equal $7M, Exports equal $13, and Imports equal $26M, what is the GDP amount? A. $99 Million B. $47 Million C. $31 Million D. $21 Million
If nominal GDP is $10 trillion and real GDP is $8 trillion, the GDP deflator is: a. 80, and this indicates that the price level has decreased by 20 percent since the base year. b. 80, and this indicates that the price level has increased by 80 percent since the base year. c. 125, and this indicates that the price level has increased by 25 percent since the base year. d. 125, and this indicates that the price level has increased by 125 percent since the base year.
In the circular flow of income and spending, that is, the basic flow of income and spending between households and firms supplemented by the foreign, financial and government sectors... 1. Exports are leakage from the circular flow 2. Savings are injections into the circular flow 3. Imports are injections into the circular flow 4. Taxes are leakages from the circular flow
Personal consumption expenditures $5,207 Interest 425 Corporate profits 735 Government spending 1,406 Depreciation 830 Rental income 146 Gross private domestic investment 1,116 Compensation of employees 4,426 Exports 870 Imports 965 Indirect business taxes 553 Proprietors' income 520 Personal taxes 886 Social Security taxes 432 Transfer payments 376 In Exhibit 15-7, disposable personal income (DI) is: a. $5,127 billion. b. $6,254 billion. c. $6,495 billion. d. $5,608 billion.
A rising price level should shift the expenditure schedule a. upward and decrease equilibrium real GDP. b. upward and increase equilibrium real GDP. c. downward and increase equilibrium real GDP. d. downward and decrease equilibrium real GDP.
4. Assume the following model of the expenditure sector: AD=C+I+G+NX C = 420 + (4/5)YD YD=Y–TA+TR TA = (1/6)Y TRo = 100 Io = 160 Go = 180 NXo =–40 b) Assume we want to reach Y* = 2700 by changing government transfer payments (TR) instead. By how much should TR be changed?
please fill in the blanks for this question. I really appreciate it
2. Describe the circular flow of income and expenditures. Explain.
7
A country reported nominal GDP of $200 billion in 2006 and $180 billion in 2005; it reported a GDP deflator of 125 in 2006 and 105 in 2005. Between 2005 and 2006: a. real output and the price level both rose b. real output rose and the price level fell c. real output fell and the price level rose d. real output and the price level both fell
a. If Ca Ca is $120, Ig is $60, X, is-$10, and Gis $40, what is the economy's equilibrium GDP?
4. According to the following figure, what is the GDP? Please show how you computed it. Assume this is a closed economy. Does the "magic* equation hold? Show your work. Figure 2-2 Income (Y = ?) Transfer Payments = $300,000 Households Taxes = $300,000 Capital Market Private Savings = $900,000 Government Government Deficit = $300,000 Business Firms Private Investment = $600,000 Gov't Purchase of G&S = $300,000 Consumption Expenditures = $2,400,000

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5. If nominal GDP was $11,500 billion in 2003 and the price level in 2003 was 111.6, then real GDP would have been approximately a. $9,795 billion. b. $10,305 billion. $10,485 billion. d. $9,750 billion. C.