Desired Aggregate Expenditure (AE) 1000 650 325 0 FIGURE 22-3 Actual National Income (Y) 45° C = 350+ (0.68)Y C = 325+ (0.65)Y C = 1000 + (0.80)Y AE I+G I Refer to Figure 22-3. Which of the following correctly describes the consumption function for this economy?

Personal consumption expenditures $4,750 Exports $810 Federal government spending $1,400 Social Security taxes $600 Depreciation $450 Indirect Business Taxes $550 New Residential Construction $800 Imports $850 Non Residential Investment $300 Corporate Income Taxes $200 Corporate Profits $50 Personal Taxes $800 Business Taxes $1,000 Transfer Payments $700 Part A: In the table above and using the Expenditure Approach calculate the Gross Domestic Product (GDP) in millions of dollars  Part B: Now assume that consumers purchase an extra $2000 of goods produced overseas, i.e., the consumption expenditures (from Part A) increase to $6,750. How would this scenario affect the GDP deflator, i.e., increase, decrease, remain unaffected or there is not enough information to tell?

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.

You are an analyst at Heys International Luggage. Your output last year of Carbon-X luggage sets was 100,000 sets, based on estimates that sales would equal 100,000 at an average price of $56.84. Heys International tries to maintain inventory at 10,000 sets. Actual sales of the luggage last year were 105,000. Considering only this result: aggregate expenditure was equal to GDP. aggregate expenditure was less than GDP. aggregate expenditure was greater than GDP. aggregate expenditure is always equal to GDP, so these sales results are irrelevant. 2 of 25 > Яншират ИРИНАРИ

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

An economy's consumption function is depicted in the table below. Consumption (C) ($ billions) 100 199 298 Disposable Income (Yd) ($ billions) 0 110 220 330 440 550 397 496 595 W The economy's MPC is equal to: Round your final answer to 2 decimal places, if necessary. Do not enter a comma "," or a dollar sign ($) while entering your answer.

The table below provides income and consumption data in billions of dollars: Disposable Income Consumption Savings 100 80 --- 200 150 --- If the government increases spending by $5,000, then based on the data, GDP in this economy will increase by: A) $7,142.85 B) $22,000 C) $16,650 D) Cannot be answered

TOPIC: Comparing total expenditures and total production

The following expenditure equation is utilised to measure the economy:  GDP = C + I + G + (X-M) Analyse each of the situations below and state which expenditures (or parts of the expenditures) would be counted under which of the four segments of the GDP expenditure equation, ie C, I, G or (X-M). a.       The purchase of Australian made furniture by a business for use in its cafe. b.       The purchase of foreign made furniture by a business for use in its café. c.       The purchase of wood by a business to manufacture furniture which will then be sold to Australian and foreign customers. d.       The purchase of 100 shares in ANZ Bank through a stockbroker. e.       Purchase of a 10-year-old foreign-made second-hand car from a Car Sales business in Parramatta, NSW. f.        A pension paid by the Australian Government to an old age pensioner. g.       You babysit for your nieces and nephews so your sister and her husband can go out for dinner.

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.