Foundations of Economics (8th Edition)
8th Edition
ISBN: 9780134486819
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Question
Chapter 21, Problem 8SPPA
To determine
Effect of fall in net exports on GDP.
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
Toyota to Shift U.S. Manufacturing Efforts
Toyota announced it planned to adjust its U.S. manufacturing operations to meet customer demands for
smaller, more fuel-efficient vehicles. In 2008, Toyota
started building a plant to produce the 2010 Prius for
the U.S. market in Blue Springs, Mississippi. Earlier
models of the Prius were produced in Asia.
Source: CNN, July 10, 2008
14. Explain how this change by Toyota will influence
U.S. GDP and the components of aggregate
expenditure.
Use the following data of a hypothetical economy. Calculate the net
Government Purchases
$15
Consumption
Gross Investment
domestic product. Consumption of Fixed Capital
90
20
5
Exports
Imports
8
12
-29
Q no 16 Calculate U.S. GDP in 2009?
Use the following data to work question 16 . The table lists some macroeconomic data for
the United States in 2009.
Item
Billions of dollars
Wages paid to labor
8,000
Consumption expenditure 10,000
Net operating surplus
3,400
Investment
1,500
Government expenditure
2,900
Net exports
–340
Chapter 21 Solutions
Foundations of Economics (8th Edition)
Ch. 21.A - Prob. 1SPPCh. 21.A - Prob. 2SPPCh. 21.A - Prob. 3SPPCh. 21.A - Prob. 4SPPCh. 21.A - Prob. 5SPPCh. 21.A - Prob. 6SPPCh. 21.A - Prob. 7SPPCh. 21.A - Prob. 1IAPCh. 21.A - Prob. 2IAPCh. 21.A - Prob. 3IAP
Ch. 21.A - Prob. 4IAPCh. 21.A - Prob. 5IAPCh. 21.A - Prob. 6IAPCh. 21.A - Prob. 7IAPCh. 21 - Prob. 1SPPACh. 21 - Prob. 2SPPACh. 21 - Prob. 3SPPACh. 21 - Prob. 4SPPACh. 21 - Prob. 5SPPACh. 21 - Prob. 6SPPACh. 21 - Prob. 7SPPACh. 21 - Prob. 8SPPACh. 21 - Prob. 9SPPACh. 21 - Prob. 10SPPACh. 21 - Prob. 1IAPACh. 21 - Prob. 2IAPACh. 21 - Prob. 3IAPACh. 21 - Prob. 4IAPACh. 21 - Prob. 5IAPACh. 21 - Prob. 6IAPACh. 21 - Prob. 7IAPACh. 21 - Prob. 8IAPACh. 21 - Prob. 9IAPACh. 21 - Prob. 10IAPACh. 21 - Prob. 11IAPACh. 21 - Prob. 12IAPACh. 21 - Prob. 1MCQCh. 21 - Prob. 2MCQCh. 21 - Prob. 3MCQCh. 21 - Prob. 4MCQCh. 21 - Prob. 5MCQCh. 21 - Prob. 6MCQCh. 21 - Prob. 7MCQ
Knowledge Booster
Similar questions
- Country A has export sales of 20 billion, government purchases of 1,000 billion, business investment is 50 billion, imports are 40 billion, and consumption spending is 2,000 billion. What is the dollar value of GDP?arrow_forwardWhat are the main components of measuring GDP with what is demanded?arrow_forwardExplain briefly whether each of the following would cause GDP to overstate or understate the degree of change in the broad standard of living. The environment becomes dirtier The crime rate declines A greater variety of goods become available to consumers Infant mortality declinesarrow_forward
- Last year, a small nation with abundant forests cut down 200 worth of trees. It then turned 100 worth of trees into 150 worth of lumber. It used 100 worth of that lumber to produce $250 worth of bookshelves. Assuming the country produces no other outputs, and there are no other inputs used in producing trees, lumber, and bookshelves, what is this nations GDP? In other words, what is the value of the final goods the nation produced including trees, lumber and bookshelves?arrow_forwardMake the following calculations according to the table below. Good A Good B Good C Good D Quantitiy 1 4 2017 Price 1 2,5 0,5 1,5 Quantitiy 3 5 4 2018 Price 2 1 1 Quantitiy 4 2 3 2019 Price 1,5 1,5 Quantitiy 3 4 2020 Price 2,5 4 1 3 Quantitiy 4 4 5 2021 Price 1,5 2,5 a. Calculate nominal GDP, real GDP and growth rate for all years. b. Calculate the inflation using the GDP deflator for all years. use the year 2017 as the base year, if you need.arrow_forwardMonthly report The Commerce Department reported that in May, 2019, retail sales rose by 0.2 percent, net exports decreased, inventories held by businesses rose by 0.3 percent, and total sales by businesses rose by 1.5 percent. Source: Commerce Department, July 2019 Does the statement that total sales by businesses rose by 1.5 percent mean that GDP increased by 1.5 percent? --... The statement that total sales by businesses rose by 1.5 percent means that GDP because O A. increased by more than 1.5 percent3; "total sales by businesses" includes only sales of intermediate goods and services O B. decreased by 1.5 percent; "total sales by businesses" are sales of intermediate goods and services O C. increased by 1.5 percent; GDP is a record of the value of all production O D. increased by less than 1.5 percent; we need to subtract retail sales of 0.2 percent from the "total sales by businesses" to eliminate double counting O E. did not change by 1.5 percent; GDP measures production of all…arrow_forward
- im having a little toruble with the following question and answer: The Commerce Department reported that retail sales increased 1.3 percent in June. Net exports were up 0.8 percent in the first quarter and inventories held by businesses rose by 0.3 percent in June. Total sales by businesses rose 0.3 percent. Source: Commerce Department, 2013 Does the statement that total sales by businesses were up 0.3 percent mean that GDP increased by 0.3 percent? The statement that total sales by businesses were up 0.3 percent means that GDP ______ because ______. A. did not change by 0.3 percent; GDP measures production of all final goods and services and "total sales by businesses" includes final and intermediate goods and services B. increased by 0.3 percent; GDP is a record of the value of all production C. decreased by 0.3 percent; "total sales by businesses" are sales of intermediate goods and services D. increased by less than 0.3 percent;…arrow_forwardCalculate net exports given that exports is tripple that of imports and imports are $130 millionarrow_forwardUse the following data to work Problems 16 and 17. The table lists some macroeconomic data for the United States in 2009. Item Billions of dollars Wages paid to labor 8,000 Consumption expenditure 10,000 Net operating surplus 3,400 Investment 1,500 Government expenditure 2,900 Net exports –340 Q no 16 Calculate U.S. GDP in 2009 Q no: 17 Explain the approach (expenditure or income) that you used to calculate GDP.arrow_forward
- The table lists some national accounts data for the United States in 2008 Calculate U.S GDP in 2008. Explain the approach (expenditure or income)that you used to calculate GDP. Item Billions of Dollars Wages Paid to labor 8,000 Consumption expenditure 10,000 Net operation surplus 3,200 Investment 2,000 Government expenditure 2,800 Net exports -700 Depreciation 1,800arrow_forwardIdentify the immediate effect of each of the following events on the U.S. GDP. List the affected component(s) of U.S. GDP for each situation if there is a change. Briefly explain the reasons if there is no change to GDP. Assume the person described by each event is an American citizen who works and lives in the U.S. Please notice that each following event is independent of one another. A. Linda pays the college tuition fee for her daughter. B. James receives a social security check from the US government. C. John buys a sports car which is made in Italy. D. Henry buys domestically produced machinery for his start-up construction business..arrow_forward
arrow_back_ios
arrow_forward_ios
Recommended textbooks for you
Principles of Economics 2eEconomicsISBN:9781947172364Author:Steven A. Greenlaw; David ShapiroPublisher:OpenStax
Exploring EconomicsEconomicsISBN:9781544336329Author:Robert L. SextonPublisher:SAGE Publications, Inc
Brief Principles of Macroeconomics (MindTap Cours...EconomicsISBN:9781337091985Author:N. Gregory MankiwPublisher:Cengage Learning
Principles of Economics 2e
Economics
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:OpenStax
Exploring Economics
Economics
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:SAGE Publications, Inc
Brief Principles of Macroeconomics (MindTap Cours...
Economics
ISBN:9781337091985
Author:N. Gregory Mankiw
Publisher:Cengage Learning