Macroeconomics
13th Edition
ISBN: 9780134735696
Author: PARKIN, Michael
Publisher: Pearson,
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Chapter 21, Problem 3SPA
To determine
Determine the aggregate expenditure (AE) and the imports of goods and services.
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The following table shows data on consumption, investments, exports, imports, and government expenditures for the United States in 2017, as published by the Bureau of Economic Analysis. All figures are in billions of dollars.
Fill in the missing cells in the table to calculate GDP using the expenditure approach.
Data
(Billions of dollars)
Consumption (C)
13,321.4
Investment (I)
3,368.0
Exports (X)
2,350.2
Imports (M)
2,928.6
Net Exports of Goods and Services
Government Purchases (G)
3,374.4
Gross Domestic Product (GDP)
The following table shows data on consumption, Investments, exports, imports, and government expenditures for the United States in 2016, as
published by the Bureau of Economic Analysis. All figures are in billions of dollars.
Fill in the missing cells in the table to calculate GDP using the expenditure approach.
Data
(Billions of dollars)
Consumption (C)
Investment (I)
12,757.9
3,035.7
Exports (X)
2,232.4
Imports (M)
2,733.7
Net Exports of Goods and Services
Government Purchases (G)
3,276.7
Gross Domestic Product (GDP)
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The following table shows data on personal consumption expenditures, gross private domestic investment, exports, imports, and government consumption expenditures and gross investment for the United States in 2007, as published by the Bureau of Economic Analysis. All figures are in billions of dollars.
Fill in the missing cells in the following table to calculate GDP.
Components
Personal Consumption Expenditures (CC)
$9,734.2
Gross Private Domestic Investment (II)
$2,125.4
Exports (XX)
$1,643
Imports (MM)
$2,351
Net exports of goods and services (X−MX−M)
Government Consumption Expenditures and Gross Investment (GG)
$2,689.8
Gross domestic product (GDP)
This method of calculating GDP, which involves summing the , is called the approach.
Chapter 21 Solutions
Macroeconomics
Ch. 21.1 - Prob. 1RQCh. 21.1 - Prob. 2RQCh. 21.1 - Prob. 3RQCh. 21.2 - Prob. 1RQCh. 21.2 - Prob. 2RQCh. 21.2 - Prob. 3RQCh. 21.2 - Prob. 4RQCh. 21.2 - Prob. 5RQCh. 21.3 - Prob. 1RQCh. 21.3 - Prob. 2RQ
Ch. 21.3 - Prob. 3RQCh. 21.3 - Prob. 4RQCh. 21.3 - Prob. 5RQCh. 21 - Prob. 1SPACh. 21 - Prob. 2SPACh. 21 - Prob. 3SPACh. 21 - Prob. 4SPACh. 21 - Prob. 5SPACh. 21 - Prob. 6SPACh. 21 - Prob. 7SPACh. 21 - Prob. 8SPACh. 21 - Prob. 9APACh. 21 - Prob. 10APACh. 21 - Prob. 11APACh. 21 - Prob. 12APACh. 21 - Prob. 13APACh. 21 - Prob. 14APACh. 21 - Prob. 15APACh. 21 - Prob. 16APACh. 21 - Prob. 17APACh. 21 - Prob. 18APACh. 21 - Prob. 19APACh. 21 - Prob. 20APACh. 21 - Prob. 21APACh. 21 - Prob. 22APACh. 21 - Prob. 23APACh. 21 - Prob. 24APACh. 21 - Prob. 25APACh. 21 - Prob. 26APACh. 21 - Prob. 27APACh. 21 - Prob. 28APA
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- Item Measuring U.S. GDP: Using the information in the table below, calculate GDP via the expenditure approach. Expenditure Approach: Consumption expenditure Wages Investment Interest, Rent, Profits Government expenditure Exports Indirect Taxes less subsidies Depreciation Imports Dollars 15,400 8,500 2,100 4,100 3,200 3,000 1,100 2,000 8,000arrow_forwardUse the table to find GDI, GDP, gross private domestic investment, personal income, and personal disposable income. (All amounts in trillions of dollars.) Profit Indirect business taxes Rent Interest Wages Depreciation Consumption Government spending Imports Social Security contributions Exports Government transfer payments Personal income taxes and nontax payments Corporate taxes and retained earnings 2.8 .8 .7 .8 8.2 1.3 11.0 1.8 1.7 2.0 1.5 2.0 1.7 .5 Please discuss what formula you are using to get each one of the answers.arrow_forwardUse the table to find GDI, GDP, gross private domestic investment, personal income, and personal disposable income. (All amounts in trillions of dollars.) Profit Indirect business taxes 2.8 .8 Rent .7 Interest Wages .8 8.2 Depreciation Consumption Government spending 1.3 11.0 1.8 Imports 1.7 Social Security contributions 2.0 Exports 1.5 Government transfer payments 2.0 Personal income taxes and nontax 1.7 payments Corporate taxes and retained .5 earnings GDI = 14.6 GDP = 14.6 ' , gross private domestic investment = 2, personal income = 12, personal disposable income= 10.3 Fill in numbers only; one decimal place; e.g. 10.0arrow_forward
- Calculate the GDP of the country described below: Consumption = $5 trillionInvestments = $2 trillionGovernment Expenditures = $3 trillionNet Exports = $1 trillionarrow_forwardSuppose you are given the following information about some hypothetical economy and its national income accounts. Use this information to answer the questions that follow. (Amounts are in millions of Kshs.) Indirect Business Taxes 459.50 Corporate profits 604.45 Corporate profits taxes 234.70 Retained earnings 165.40 Proprietors' income 519.20 Rental Income 31.05 Net Interest 585.55 Exports 842.85 Imports 1190.20 Income Receipts from rest of world 427.8 Income Payments to rest of world 377.45 Net National Product 6190.4 Government expenditures for Goods and Services 1358.25 Personal current Transfer receipts 871.15 Social Security Taxes (employee & employer) 490.75 Personal Consumption expenditures 4892.85 Gross Private Domestic Investment 1082.45 Disposable personal income 5128.75 a. Find GDP and GNP b. Find depreciation (capital consumption allowance) c. Find National Incomearrow_forwardWhich of the following statements best describe how economists calculate GDP? Group of answer choices Economists at the Census bureau collect data from surveys sent to consumers, private firms and government agencies and add them up on a yearly basis. Economists at the Bureau of Economic Analysis pull together data on sales, imports, exports, government purchase and investments from various government sources every 3 months. Economists at the Bureau of Labor Statistics collect data from surveys sent to consumers, private firms and government agencies and add them up every 3 months. Economists at the Congressional Budget Office calculate GDP for a given year by adjusting the previous year’s GDP with inflation.arrow_forward
- Calculate GDP using the Income and Expenditure Approach.(all figures are in billions of dollars): Item Amount ($)Government purchase of goods and services 1,721.6Exports 1,096.3Receipts of factor income from the rest of the world 382.7Depreciation (consumption of fixed capital) 990.8Net fixed Investments 688.2Corporate income taxes 265.2Consumption expenditures 6,739.4Indirect business taxes 664.6Imports 1,475.8Payments of factor income to the rest of the world…arrow_forwardCalculate the four components of aggregate expenditure and GDP for the following economy using data from the table below.Instructions: Enter your responses as whole numbers. If you are entering any negative numbers, be sure to include a negative (-) sign in front of those numbers. GDP Consumption expenditures $550 Exports $100 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 $50 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_forwardSuppose the data BELOW is for a given year from the annual Economic Report of the President. Calculate GDP using the expenditure approach (Amount in billions of dollars): Corporate profits: $ 305Depreciation: $ 479Gross private domestic investment: $716Personal taxes: $ 565Personal saving: $120Government spending: 924Imports: $ 547Exports: $ 427Personal consumption expenditures: $ 2,966Indirect business taxes: $ 370Contributions for Social Security (FICA): $ 394Transfer payments and other income: $ 967arrow_forward
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