Exploring Macroeconomics
8th Edition
ISBN: 9781544337722
Author: Robert L. Sexton
Publisher: SAGE Publications, Inc
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Question
Chapter 11, Problem 4P
To determine
To explain:
The reason behind the expenditure on the tires by the FM Company is not included directly in the
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The expenditures on tires by the Ford Motor Company are not included directly in GDP statistics while consumer expenditures on replacement tires are included. Why?
Calculate total GDP for this economy given the
following components of demand. Round your
answer to the nearest tenth and enter the
value in trillions of dollars.
Components of GDP on the Demand Side
(in trillions of dollars)
Consumption
Investment
Government spending
Exports
Imports
Provide your answer below:
trillion
Total GDP
12.9
3.8
4.2
3.0
4.2
?
Calculate the PPP-adjusted GDP for each of the four countries, using the information found in the table below.
Instructions: Round your answers to the nearest dollar.
Country
GDP
($)
Price level
(%)
Ona
12,000
5
Rye
12,800
-26
Zolfo
14,000
-9
Avon
23,300
22
PPP-adjusted GDP
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- “The total demand for goods and services consists of consumption demand,investment demand, government demand and net exports.” In terms of thisstatement, discuss the three sets of demand factors that can lead to economicgrowth.arrow_forwardDescribe whether each component of demand comprised GDP has become more important when calculating GDP less important or stayed the samearrow_forwardCalculate the four components of expenditure and GDP for the following economy using data from the table below. Instructions: Enter your responses as whole numbers. GDP Consumption expenditures Exports Government purchases of goods and services Construction of new homes and apartments Sales of existing homes and apartments $550 $75 $200 $100 $200 $50 Imports Beginning-of-year inventory stocks $100 End-of-year inventory stocks Business fixed investment Government payments to retirees Household purchases of durable goods $125 $100 $100 $150 Consumption expenditures: Investment expenditures: Government Purchases: Net Exports: GDP:arrow_forward
- Calculate total GDP for this economy given the following components of supply. Round your answer to the nearest tenth and enter the value in trillions of dollars (i.e. $xx.x trillion). of GDP on the Supply Side (in trillions of dollars) Components Durable goods Nondurable goods Services Structures Change in inventories Provide your answer below: trillion Total 3.8 2.7 12.2 2.1 0 ?arrow_forwardCalculate the four components of expenditure and GDP for the following economy using data from the table below.Instructions: Enter your responses as whole numbers. GDP Consumption expenditures $600 Exports $75 Government purchases of goods and services $200 Construction of new homes and apartments $200 Sales of existing homes and apartments $200 Imports $50 Beginning-of-year inventory stocks $100 End-of-year inventory stocks $125 Business fixed investment $100 Government payments to retirees $100 Household purchases of durable goods $150 Consumption expenditures: $ Investment expenditures: $ Government Purchases: $Net Exports: $GDP: $arrow_forwardCalculate the PPP-adjusted GDP for each of the four countries using the information found in the table below. Instructions: Round your answers to the nearest dollar. Country GDP ($) Price level (%) PPP-adjusted GDP Ona 11000 8 Rye 12500 −24 Zolfo 13900 −12 Avon 23200 21arrow_forward
- The country of Sylvania produces and consumes only three goods: Red Bull, pizza, and T-shirts. The quantity produced and price of each good in 2011 and 2012 are given in the following table: 2011 2012 Quantity Price Quantity Price T-Shirts 80 $25 96 $25 Red Bull (cans) 510 $1 510 $2 Pizza (slices) 1030 $3 950 $6 Nominal GDP in 2011 was $ and nominal GDP in 2012 was $ (Enter your responses as integers.) If 2011 is the base year, real GDP in 2011 was $ and real GDP in 2012 was $ (Enter your responses as integers.) Based on your answer above, the percentage change in real GDP between 2011 and 2012 was percent. (Round your response to two decimal places and use a minus sign if necessary.) If 2012 is the base year, real GDP in 2011 was $ and real GDP in 2012 was $ (Enter your responses as integers.) Based on your answer above, the percentage change in real GDP between 2011 and 2012 was percent. (Round your response to two decimal places and use a minus sign if necessary.) Using 2011 as the…arrow_forwardConsumption $400 Imports $ 10 Net investment $ 20 Government purchases $ 100 Exports $ 20 Capital consumption allowance $ 20 Statistical discrepancy $ 6 Receipts of factor income from the rest of the world $ 10 Payments of the factor income to the rest of the world $ 13 What is the GDP for this economy? What is the GNP for this economy? What is the NNP for this economy? What is the national income for this economy? What is the gross investment in for this economy?arrow_forwardwhat factors/components impact the decrease in GDP?arrow_forward
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