ENGR.ECONOMIC ANALYSIS
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ISBN: 9780190931919
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Transcribed Image Text:Figure 5.16 Circular Flow Model
F
LL
W
GDP
B
T
GOV
B
LF
R
X
FE
H
M
ΤΡΑ
Transcribed Image Text:Exercise 3: Population and the Circular Flow
As described in this chapter population change can impact GDP. Use Figure 5.16 of the circular
flow model to explain what would happen if there was a sharp decline in population, and thus
households (H).
1. What happened to consumption (C), savings (S), and taxes (T)?
2. How could changes in C, S, and T impact firms (F) and their contribution to GDP?
3. How could changes in C, S, and T impact government spending (G) and its contribution to
GDP?
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- Imagine that the economy can be modeled as follows: AE=C+l+G C = 200 + .8Yd I=250 G=150 T=100 Graph the economy.arrow_forwardi need help with this macro econmics question 4arrow_forwardThe table below is extracted from Happy land Republic, Bureau of Statistics recordsfor 2018-2019. Use the information in this table to answer the questions that follow.i. Calculate Happy Land Republic’s nominal GDP and real GDP in 2016ii. Why does real GDP always defer from nominal GDP?Item Base year (2015) 2016Production Price Production PriceUsed car sales 5,000 2000.00 6,000 2,500Factory components sales 8,000 500.00 10,000 1200.00Cloth sales 8,000 20.00 14,000 35.00Beef sales 1,500 10.00 1,800 12.00Milk litres sales 5,000 1.30 6,000 2.50Computers sales 2000 500.00 2500 800.00Printers sales 500 300.00 400 355.00Raw materials for tractorassembling plant sales 4500 250.00 4450 300.00arrow_forward
- GDP 1. Calculate the values for the blanks in the shaded areas of the table below: Expenditure Components of GDP by Country, 2020 (83Son of current US dollars) Australia Canada Denmark Finland Japan India 1617 137.9 873 65.9 C E FOOD 80.0 65.3 16 0.5 L M N 195.4 97.G 1725 96.7 Household consumption Government expenditure Investments Gross fixed Investments Changes in inventories Net Exports Exports Imports A: ÄÜÄ÷ B: C: D: E: F: G: H: I: J: 746.5 K: L: 297.2 A 316.9 4.3 3152 254.7 943.7 371.8 B 377.7 (147) K 476.0 509.8 M: N: 0: P: 1,591.7 Q: R: 292.1 722.0 97.0 4973 $11.3 કીડી || T: 2.700.7 Y: 1,066.4 1,279.5 106 785.4 786.2 New Zealand UK 122.0 43.7 G 47.3 (p.s) P 46A GDP S U W Y Source: GOP by Type of Expenditure at current prices-US dollars, Retrieved 7/27/2022. National Accounts Estimates of Main Aggregates United Nations feste Division 472 Z: ZZ: 1,683.7 2. Based on the information in the table and your calculations for Question #1: Do any countries have positive net exports?…arrow_forwardAfter reading the statement below you will choose 2 answers! Determine where this transaction should be classified in the GDP formula.Choose what would happen to GDP as a result of this transaction.The government decides to build more bridges in California CIGXMIncreaseDecreasearrow_forwardWhat is the GDP gaparrow_forward
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