The following data were recently obtained from the BEA; values are in billions of dollars: Personal consumption expenditures, new goods: $3,780 Personal consumption expenditures, services: $8,667.8 Personal consumption expenditures, used goods: $570 Gross private domestic investment: $3,096.3 Exports of goods and services: $1,798.2 Imports of goods and services: $2,342.9 Government consumption expenditures and gross investment: $3,839.3 Government outlays for SNAP (food stamp) program: $85.4 a. What is the value of GDP? b. Your company has several factories and divisions located in other countries; how does the production of goods and services from those factories and divisions affect both U.S. and the other countries’ GDP? c. You are considering expanding your sales to either the country of Greater Dumpington or Lesser Dumpington, but are concerned about the local citizens’ ability to afford your relatively-expensive products. Both countries have the same GDP, but Greater Dumpington has twice the population size as Lesser Dumpington. In which country should you expand?
The following data were recently obtained from the BEA; values are in billions of dollars:
Personal consumption expenditures, new goods: $3,780
Personal consumption expenditures, services: $8,667.8
Personal consumption expenditures, used goods: $570
Gross private domestic investment: $3,096.3
Exports of goods and services: $1,798.2
Imports of goods and services: $2,342.9
Government consumption expenditures and gross investment: $3,839.3
Government outlays for SNAP (food stamp) program: $85.4
a. What is the value of GDP?
b. Your company has several factories and divisions located in other countries; how does the production of goods and services from those factories and divisions affect both U.S. and the other countries’ GDP?
c. You are considering expanding your sales to either the country of Greater Dumpington or Lesser Dumpington, but are concerned about the local citizens’ ability to afford your relatively-expensive products. Both countries have the same GDP, but Greater Dumpington has twice the population size as Lesser Dumpington. In which country should you expand?
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