Macroeconomics
13th Edition
ISBN: 9780134735696
Author: PARKIN, Michael
Publisher: Pearson,
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Chapter 22, Problem 26APA
To determine
Determine the personal consumption expenditure (PCE) and PCE deflator.
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Toyota to Shift U.S. Manufacturing Efforts
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New U.S. home sales surged
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Source: Bloomberg, January 28, 2016
Where do sales and inventories of existing homes appear in the circular flow of expenditure and income?
Explain how an increase in sales of existing homes and a low inventory of existing homes affects real GDP.
Sales and inventories of existing homes
in the circular flow of expenditure and income and
GDP.
O A. are not part of current expenditure, so they do not appear;
do not influence
O B. appear as a flow of investment from firms through goods markets to households;
increase
O C. appear as a flow of investment from households through factor markets;
increase
O D. are part of the flow of investment, so they do appear;
increase
O E. appear as a flow of consumption expenditure from households to…
The following provides data for an economy in a certain year.
Consumption expenditures
$1,000
Imports
$600
Government purchases of goods and services
$700
Construction of new homes and apartments
$500
Sales of existing homes and apartments
$600
Exports
$500
Government payments to retirees
$200
Household purchases of durable goods
$300
Beginning-of-year inventory
$500
End-of-year inventory
$600
Business fixed investment
$300
Given the data, compute the investment component of GDP.
$400
$800
$900
$300
Chapter 22 Solutions
Macroeconomics
Ch. 22.1 - Prob. 1RQCh. 22.1 - Prob. 2RQCh. 22.1 - Prob. 3RQCh. 22.1 - Prob. 4RQCh. 22.1 - Prob. 5RQCh. 22.2 - Prob. 1RQCh. 22.2 - Prob. 2RQCh. 22.2 - Prob. 3RQCh. 22.2 - Prob. 4RQCh. 22.2 - Prob. 5RQ
Ch. 22.2 - Prob. 6RQCh. 22.2 - Prob. 7RQCh. 22.3 - Prob. 1RQCh. 22.3 - Prob. 2RQCh. 22.3 - Prob. 3RQCh. 22.3 - Prob. 4RQCh. 22.3 - Prob. 5RQCh. 22.3 - Prob. 6RQCh. 22 - Prob. 1SPACh. 22 - Prob. 2SPACh. 22 - Prob. 3SPACh. 22 - Prob. 4SPACh. 22 - Prob. 5SPACh. 22 - Prob. 6SPACh. 22 - Prob. 7SPACh. 22 - Prob. 8SPACh. 22 - Prob. 9SPACh. 22 - Prob. 10SPACh. 22 - Prob. 11SPACh. 22 - Prob. 12APACh. 22 - Prob. 13APACh. 22 - Prob. 14APACh. 22 - Prob. 15APACh. 22 - Prob. 16APACh. 22 - Prob. 17APACh. 22 - Prob. 18APACh. 22 - Prob. 19APACh. 22 - Prob. 20APACh. 22 - Prob. 21APACh. 22 - Prob. 22APACh. 22 - Prob. 23APACh. 22 - Prob. 24APACh. 22 - Prob. 25APACh. 22 - Prob. 26APACh. 22 - Prob. 27APACh. 22 - Prob. 28APACh. 22 - Prob. 29APA
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