Examine the graph above. Suppose that government increases its spending, shifting the aggregate expenditure line upwards. GDP increases from GDP1to GDP2, and this amount is $550 billion. If the MPC is 0.8, calculate the difference between the points N and L to find out by how much the government spending changed.
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2. e
Examine the graph above. Suppose that government increases its spending, shifting the aggregate expenditure line upwards.
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- TTT Consumption Government Real GDP, Y expenditure, C Investment, I expenditure, G Exports, X Imports, M (trillions of (trillions of 2009 dollars) 2009 dollars) 2009 dollars) 2009 dollars ) 0.00 0.75 (trillions of (trillions of (trillions of (trillions of 2009 dollars) 2009 dollars) 0.00 0.00 1.75 1.00 0.75 3.00 2.00 1.75 1.00 0.75 6.00 4.00 1.75 1.00 0.75 1.50 9.00 6.00 1.75 1.00 0.75 2.25 12.00 8.00 1.75 1.00 0.75 3.00 The above table gives data for the nation of Mojo. The amount of autonomous expenditure is the equilibrium real GDP is and when real GDP equals $9 trillion the unplanned inventory changes equal O $2.75 trillion; $3.0 trillion; $6.0 trillion O $3.5 trillion; $6.0 trillion; $1.75 trillion $2 trillion; $9.0 trillion; $3.0 trillion $3 trillion; $12.0 trillion; $7.25 trillionWhat are the three (3) measures of GDP ? How are they calculated? (100-300 words)If a country produces the following items during the year, calculate GDP.Item Quantity Price Market Value(Quantity x Price)Cars 10 $20,000Computers 100 $1, 000Books 1,000 $10GDP =
- Calculate net Exports if exports is $3000 and imports is $2200The table contains price and quantity information for two vehicle models produced by Ford Motor Company, the F-series trucks and Escape SUVs. 2016 2016 2017 2017 price quantity price quantity ford escapes $24,485 307,069 $24,645 308,296 ford trucks $44,400 820,799 $24,645 896,764 a. Calculate the amount contributed by Ford to U.S. GDP (real and nominal) from the sales of the two models in 2016 and 2017. b. Determine the growth rate of nominal GDP (if Ford were the entire economy). c. Determine the growth rate of real GDP (if Ford were the entire economy).Calculate GDP deflator from the following table: Year Nominal Real GDP GDP 2000 8952 8952 2001 9200 9050 2002 10,000 9500 2003 10,030 9330 2004 11,100 10,000
- Calculate GDP deflator from the following table: Year Nominal GDP Real GDP 2000 8952 8952 2001 9200 9050 2002 10,000 9500 2003 10,030 9330 2004 11,100 10,000After reading a report that says that around 70% of U.S. GDP is consumption, your friend Alex states, “ spending 70% of GDP on consumption is a lot. All people care about is buying stuff, consuming stuff, and accumulating stuff. We would be much better off if we spent our money on services or experiences”. Identify Alex’s misunderstanding of GDP.Calculate GDP using the Income and Expenditure Approach.(all figures are in billions of dollars): Item Amount ($)Government purchase of goods and services 1,721.6Exports 1,096.3Receipts of factor income from the rest of the world 382.7Depreciation (consumption of fixed capital) 990.8Net fixed Investments 688.2Corporate income taxes 265.2Consumption expenditures 6,739.4Indirect business taxes 664.6Imports 1,475.8Payments of factor income to the rest of the world…
- Homework The Aggregate Economy Revenues Expenditures GDP Year (Billions of dollars) (Billions of dollars) (Billions of dollars) 2000 2,025 1,789 9,817 2001 1,991 1,863 10,128 2002 1,853 2,011 10,470 2003 1,783 2,160 10,961 2004 1,880 2,293 11,686 Plot the data for revenues and expenditures as a percentage of GDP on the following graph, rounded to the nearest percent. Use the purple points (diamond symbol) for expenditures and the green points (triangle symbol) for revenues. Note: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically. 25 EXPENDITURES AND REVENUES (Percent of GDP) 15 10 0 2003 > Expenditures 2004 2005 1999 2000 2001 2002 YEAR In which years was the government's budget in deficit? Check all that apply. 2000 2001 2002 U 2003 2004 In 2001, the national debt by 4 Revenues X A-Z हेThe table below showsa country's potential Gross Domestic Product (GDP) and true GDP. 1970e 19754 1980 GDP 2,500- 3,5004 4,5004 5,500e 6,500e 7,500- 8,500- Year 1985e 1990- 1995e 2000 Potential (billion) KDNK is 3,890- 4,9814 2,8804 3,988e 7,518e 7,983e 7,850t right(billion) i. Sketch a business cycle based on the data provided above ii. Describe the business cycle. eThe table contains price and quantity information for two vehicle models produced by Ford Motor Company, the F-series trucks and Escape SUVs. 2016 2016 2017 2017 price quantity price quantity Ford Escape SUV's $24,485 307,069 $24,645 308,296 F-Series Trucks $44,400 820,799 $47,800 896,764 A. Calculate the amount contributed by Ford to U.S. GDP (real and nominal) from the sales of the two models in 2016 and 2017. B. Determine the growth rate of nominal GDP (if Ford were the entire economy). C. Determine the growth rate of real GDP (if Ford were the entire economy).