produces hotdogs and buns in the following quantities and prices in 2016 and 2017. Assume also that 2016 is the base year and the real GDP will be calculated using 2016 prices. What is the real GDP 2017? Hot Dogs Buns Quantity Price Quantity Price Year 2016 (base year) 20 million $2 15 million $1 Year 2017 22 million $3 16 million $2 (a)$90 million. (b)$98 million. (c)$60 million.
(1A) Assume the economy of country C produces hotdogs and buns in the following quantities and prices in 2016 and 2017. Assume also that 2016 is the base year and the real GDP will be calculated using 2016 prices. What is the real GDP 2017?
|
|
Hot Dogs |
|
Buns |
|
|
|
Quantity |
Price |
Quantity |
Price |
|
Year 2016 (base year) |
20 million |
$2 |
15 million |
$1 |
|
Year 2017 |
22 million |
$3 |
16 million |
$2 |
- (a)$90 million.
(b)$98 million.
(c)$60 million.
(1B) In calculating GDP, which component of spending must be subtracted from total spending to account for the fact that not all private or public spending by U.S. households is directed to U.S. businesses?
- exports
- domestic
- imports
(1C) The purchase of new capital goods by a business would fall under which component of GDP?
(a)Investment
(b)Government
(c)Consumption
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