ECON MACRO
5th Edition
ISBN: 9781337000529
Author: William A. McEachern
Publisher: Cengage Learning
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- Component Value ($bil) Component Value (Sbil) Consumption 680 Government outlays 300 Business Fixed Investment 90 Government purchases 220 Residential Investment 40 Labor income 520 Inventory stock, 12/31/22 160 Capital income 260 Inventory stock, 12/31/23 150 Net income of foreigners 40 Imports 140 Taxes, subsidies, and transfers 120 Exports 120 Depreciation 70 For each of the following calculations, show your work! a) Compute net exports (X) and investment (1) for this country. b) Use the spending approach to compute GDP (Y) for this country. c) Use the equation Y-C-G to compute national saving (S) for this country. How does it relate to your answer to part a? d) Briefly discuss how this country's spending components, as proportions of GDP , compare with the US in a recent year. e) Use the income approach to compute GDP for this country. Given your answer to part b, what is the size of the statistical discrepancy?arrow_forward6. Gross private domestic investment (Ig) vs. net private domestic investment (In)? I Gross private domestic investment (Ig) (plus, minus, multiply by, divide by) depreciation is net private domestic investment (In). That is, In = Ig – Depreciation. (D_ of all the physical capital-machines, equipment, buildings-used up in producing the year's output. is the value The difference between gross domestic product (GDP) and net domestic product (NDP) is the value of the c_ net ) private investment expenditures. NDP includes (gross, net ) private investment expenditures after the depreciation allowance has been subtracted from gross investment. NDP is simply GDP adjusted for d_ the expenditures approach, net private domestic investment (In) measures of investment spending would be appropriate. off_ or depreciation allowance. GDP includes (gross. If you were to determine net domestic product (NDP) througharrow_forwardFind the Net domestic product at the market pricearrow_forward
- Suppose GDP in this country is $690 million. Enter the amount for consumption. Value National Income Account (Millions of dollars) Government Purchases (G) 150 Taxes minus Transfer Payments (T) 210 Consumption (C) Investment (I) 165arrow_forwardWhat are the differences between national income, personal income, and disposable personal income? Note:- Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism. Answer completely and accurate answer. Rest assured, you will receive an upvote if the answer is accurate.arrow_forwardQuestion: What is the aggregate of the gross balances of primary income of all resident institutional units knows as?[A] Gross domestic Product[B] Gross national product[C] Gross National income[D] Net national productPlease Don't use chatgpt or other ai tool.arrow_forward
- The Reliable Aircraft Company manufactures small, pleasure-use aircraft. Based on past experience, sales volume appears to be affected by changes in the price of the planes and by the state of the economy as measured by consumers' disposable personal income. The following data pertaining to Reliable's aircraft sales, selling prices, and consumers' personal income were collected: Year Aircraft Sales Average Price Disposable Constant Income (Dollars) (In constant 2006 dollars, billions) 2006 525 16,800 610 2007 450 8,000 610 2008 400 8,000 580 The arc price elasticity of demand between 2006 and 2007 is: The arc income elasticity of demand between 2007 and 2008 is: Assume that these estimates are expected to remain stable during 2009. Forecast 2009 sales for Reliable assuming that its aircraft prices remain constant at 2007 levels and that disposable personal income will increase by 7%. Also assume that the arc…arrow_forwardthe following data, calculate a) Gross Domestic Capital Formation b) Wages and Salaries c) Net Domestic Product at Market Price Particulars Mixed Income of Self Employed 2. Rs. In Crores 3500 1. Net Indirect Taxes 3. Government Final Consumption Expenditure 4. Net Exports 5. Consumption of Fixed Capital 6. Net Factor Income from Abroad 7. Operating Surplus (Rent+Interest+Profits) 8. NNP at Factor Cost 9. Profits 10. Private Final Consumption Expenditure | 11000 300 14000 3000 300 700 12000 30000 500arrow_forwardDepreciation 200 Exports 150 public transfer 200 Gross domestic private investment 300 corporate income tax 100 factor receipts from abroad 400 gevenment expenditure on goods and services 250 interest income 800 compensation of employees 2600 net interest on government debit 50 indirect business taxes 100 factor payments to abroad 200 imports 200 proprietors incom(profits) 700 retained corporate profit 200 personal consumption expenditure 4500 personal taxes 100 social security contribution 50 rental income 600. From the above data find personale disposable income.arrow_forward
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