Macroeconomics
10th Edition
ISBN: 9781319105990
Author: Mankiw, N. Gregory.
Publisher: Worth Publishers,
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Question
Chapter 2, Problem 4PA
(a)
To determine
The components of expenditure or
(b)
To determine
The components of expenditure or GDP.
(c)
To determine
The components of expenditure or GDP.
(d)
To determine
The components of expenditure or GDP.
(e)
To determine
The components of expenditure or GDP.
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Students have asked these similar questions
Van and Amy Cho live in Conshohocken, PA. Amy's father, Carlos, lives in Sweden.
For each of the following transactions that occur in their lives, identify whether it is included in the calculation of U.S. GDP as part of consumption (C),
investment (I), government purchases (G), exports (X), or imports (M). Check all that apply.
Transaction
Amy's father in Sweden orders a bottle of Vermont maple syrup from the producer's website.
Amy gets a new refrigerator made in the United States.
The Pennsylvania Department of Transportation, a state administration, fixes potholes along PA highway
23, which feeds into the center of Conshohocken.
Van's employer upgrades all of its computer systems using U.S.-made parts.
Van buys a sweater made in Guatemala.
C
I
0
G
0
0
X
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M
Analyzing a Table:
Analyzing a Table:
item
billions of dollar
consumption ependiture
6258
investment
1623
government expenditure on goods and services
1630
exports of goods and services
998
imports of goods and services
1252
The table above gives the values of different expenditures in the United States during 1999. Answer the following questions about the United States.
What was the value of net exports of goods and services in 1999?
What was GDP equal to in 1999?
Describe the graph and its trend.
Knowledge Booster
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- Paolo and Sharon Zambetti live in Swarthmore, PA. Their son, Van, is an artist living in New York City. For each of the following transactions that occur in their lives, identify whether it is included in the calculation of U.S. GDP as part of consumption (C), investment (I), government purchases (G), exports (X), or imports (M). Check all that apply. Transaction C I G X M Paolo buys a bottle of Italian wine. Sharon gets a haircut. Van paints a landscape and sells it to an art collector in Japan. The Zambettis build an addition on their house. The Federal Aviation Administration expands the runways at Philadelphia International Airport, which is just a few miles from Paolo and Sharon's house.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 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_forwardWhich of the following would increase the consumption component of U.S. GDP? Select one: OA. A Baton Rouge resident purchases 100 shares of Amazon.com stock. B. WalMart, a U.S. company, builds a new store in Oklahoma.. C. LSU purchases a new computer produced in the U.S. for Charles to use in his office. OD. A Baton Rouge resident purchases a new washing machine produced in South Korea for use in her home. E. LSU purchases a new computer produced in China for Charles to use in his office.arrow_forward
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