Economics (7th Edition) (What's New in Economics)
7th Edition
ISBN: 9780134738321
Author: R. Glenn Hubbard, Anthony Patrick O'Brien
Publisher: PEARSON
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Question
Chapter 19, Problem 19.2RDE
Subpart (a):
To determine
Difference between private domestic investment and residential and non-residential fixed private investment
Subpart (b):
To determine
Difference between private domestic investment and residential and non-residential fixed private investment
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Students have asked these similar questions
1. Calculate the values for the blanks in the shaded areas of the table below (identify your responses in a logical
fashion in your document):
Expenditure Components of GDP by Country, 2018 (billions of US dollars)
Australia
Canada
Denmark
Finland
India
Japan
New Zealand
UK
US
Consumption
808.7
996.9
165.9
146.1
1650.6
2763.3
120.0
1870.5
13998.7
Investment
Business fixed investment
336.9
385.1
78.8
65.6
842.7
1202.5
49.1
487.3
4260.7
Changes in inventories
0.1
9.4
2.9
3.4
27.4
11.2
0.1
5.8
54.7
Government
275.5
357.1
86.6
62.7
312.1
981.6
38.4
528.3
2904.3
Net Exports
917.1
58.2
Exports
Imports
348.5
544.9
197.9
106.8
548.6
856.8
2510.2
312.0
581.1
176.4
108.8
657.0
904.4
58.1
907.1
3148.5
GDP
Source: UNData, UN Statistics Division, data.un.org, GDP by Type of Expenditure at current prices – US dollars
Suppose GDP in this country is $480 million.
National Income Account
Value
(Millions of dollars)
Government Purchases (GG)
150
Taxes minus Transfer Payments (TT)
180
Consumption (CC)
225
Investment (II)
105
Complete the following table by using national income accounting identities to calculate private and public saving. In your calculations, use data from the initial table.
Private SavingPrivate Saving
=
(YTI, TG, YCT)
= =
?million
Public SavingPublic Saving
= =
(CT, TG, YCT, YTI)
= =
$million
1. Calculate the values for the blanks in the shaded areas of the table below (identify your responses in a logical fashion in your document):
Expenditure Components of GDP by Country, 2018 (billions of US dollars)
Denmark Finland
Australia
Canada
India
Japan
New Zealand
UK
US
Consumption
808.7
996.9
165.9
146.1
1650.6
2763.3
120.0
1870.5
13998.7
Investment
Business fixed investment
336.9
385.1
78.8
65.6
842.7
1202.5
49.1
487.3
4260.7
Changes in inventories
0.1
9.4
2.9
3.4
27.4
11.2
0.1
5.8
54.7
Government
275.5
357.1
86.6
62.7
312.1
981.6
38.4
528.3
2904.3
Net Exports
Exports
Imports
348.5
544.9
197.9
106.8
548.6
917.1
58.2
856.8
2510.2
312.0
581.1
176.4
108.8
657.0
904.4
58.1
907.1
3148.5
GDP
Source: UNData, UN Statistics Division, data.un.org, GDP by Type of Expenditure at current prices – US dollars
2. Based on the information in the table and your calculations for Question #1:
Do any countries have positive net exports?
Which one(s)?
Which country has the largest negative net…
Chapter 19 Solutions
Economics (7th Edition) (What's New in Economics)
Ch. 19 - Prob. 19.1.1RQCh. 19 - Prob. 19.1.3RQCh. 19 - Prob. 19.1.4RQCh. 19 - Prob. 19.1.5RQCh. 19 - Prob. 19.1.6PACh. 19 - Prob. 19.1.7PACh. 19 - Prob. 19.1.8PACh. 19 - Prob. 19.1.9PACh. 19 - Prob. 19.1.10PACh. 19 - Prob. 19.1.11PA
Ch. 19 - Prob. 19.1.14PACh. 19 - Prob. 19.2.1RQCh. 19 - Prob. 19.2.2RQCh. 19 - Prob. 19.2.3RQCh. 19 - Prob. 19.2.4PACh. 19 - Prob. 19.2.9PACh. 19 - Prob. 19.2.10PACh. 19 - Prob. 19.3.1RQCh. 19 - Prob. 19.3.2RQCh. 19 - Prob. 19.3.3RQCh. 19 - Prob. 19.3.4PACh. 19 - Prob. 19.3.5PACh. 19 - Prob. 19.3.6PACh. 19 - Prob. 19.3.7PACh. 19 - Prob. 19.3.8PACh. 19 - Prob. 19.3.9PACh. 19 - Prob. 19.3.10PACh. 19 - Prob. 19.4.1RQCh. 19 - Prob. 19.4.3RQCh. 19 - Prob. 19.4.4PACh. 19 - Prob. 19.4.6PACh. 19 - Prob. 19.4.7PACh. 19 - Prob. 19.4.8PACh. 19 - Prob. 19.1RDECh. 19 - Prob. 19.2RDECh. 19 - Prob. 19.6RDECh. 19 - Prob. 19.7RDE
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Similar questions
- how to find gross investment in the economy? is it correct if i add Net investment to Capital Consumption? Gross Investment = Net investment + Capital Consumptionarrow_forwardWhich of the following would increase gross private domestic investment in an economy? Select one: A. An increase in the number of highway construction projects the government is funding. B. An increase in the level of Apple's inventory. C. An increase in the shares of Apple stock households own. D. An increase in the number of workers Apple hires.arrow_forwardPlease explain the relationships between interest rates, expected rates of return, investment, and GDP. Be specific and be thorough.arrow_forward
- Use the concepts of gross investment and net investment to distinguish between an economy that has a rising stock of capital and one that has a falling stock of capital. “In 1933 net private domestic investment was minus $6 billion. This means that in that particular year the economy produced no capital goods at all.” Do you agree? Why or why not? Explain: “Though net investment can be positive, negative, or zero, it is quite impossible for gross investment to be less than zero.”arrow_forwardDefine the term Net Investment?arrow_forward5 GDP (Y) Consumption (C) Investment (I) $ 0 $ 60 $ 30 100 120 40 200 180 50 300 240. 60 400 500 300 360 70 BO (Advanced analysis) The table gives data for a private closed economy. The letters Y, C, S, and /are used to represent real GDP, consumption, saving, and Investment, respectively. The equation representing the Investment schedule for the economy is O Multiple Choice 1=0.3Y /= 80-03Y =30+0.1Y 10-30arrow_forward
- Suppose GDP in this country is $660 million. Enter the amount for government purchases. National Income Account Government Purchases (G) Taxes minus Transfer Payments (T) Consumption (C) Investment (I) Private Saving = Complete the following table by using national income accounting identities to calculate national saving. In preceding table. National Saving (S) = $ Public Saving = $ = $ Value (Millions of dollars) Complete the following table by using national income accounting identities to calculate private and public saving. In your calculations, use data from the initial table. million million million 195 300 210 calculations, use data from the Based on your calculations, the government is running a budgetarrow_forward6) Use the figure below to answer this question. Interest Rate (%) 12 10 Loanable Funds (in billions of Pounds) [Page 6 of 9] [ECO If the interest rate is 8% households and firms will want to borrow: a) £3 billion b) £2 billion c) £4 billion d) £1 billion 2.arrow_forward
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