MACROECONOMICS
14th Edition
ISBN: 9781337794985
Author: Baumol
Publisher: CENGAGE L
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Chapter 5, Problem 3DQ
To determine
To explain: the reason the
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please calculate correct gdp
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Calculate GDP using:
i) income approach
ii) expenditure approach
Chapter 5 Solutions
MACROECONOMICS
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- Which of the following are included in GDP calculations? a. Cleaning services performed by Molly Maid Corporation b. Lawn-mowing services performed by a neighborhood child c. Drugs sold illegally on a local street comer d. Prescription drugs manufactured in the United States and sold at a local pharmacy e. A rug woven by hand in Turkey f. Air pollution that diminishes the quality of the air you breathe g. Toxic-waste cleanup performed by a local company h. Car parts manufactured in the United States for a car assembled in Mexico i. A purchase of 1,000 shares of IBM stock j. Monthly Social Security payments received by a retireearrow_forwardIn the computation of South Africa's GDP, which of the following is included in the investment component? a) purchases of South African stocks and bonds b) purchases of new cars by South Africans. c) purchases of new South African durable goods d) purchases of imported capital equipmentarrow_forwardI completely understand that you will not do th entire worksheet but could you do a couple of them and explain to me how to finish the rest and how to calcuate the overall gdp? Thank youarrow_forward
- Using the following national income accounting data, compute GDP, NDP, and NI. All figures are in billions. Round your answers to one decimal place. category value compensation of employees $ 196.2 U. S. exports of goods and services 19.8 Consumption of fixed capital 11.8 government purchases 59.4 taxes on production and imports 14.4 net private domestic investment 52.1 transfer payments 13.9 U. S. imports of goods and services 16.5 personal taxes Net foreign factor income Personal consumption expenditures Statistical discrepancy 40.5 2.2 219.1 0arrow_forwardCalculate 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_forwardGDP = $ Billion Use the data below to calculate GDP using the income approach. (I intentionally left out some of the expenditure categories so that you must use the income approach). All figures are in billions of dollars: Gross Private Domestic Investment 848.3 Proprietor's Income 413.9 Dividends 190.6 Wages and Salaries 3183.1 Undistributed Corporate Profits 62.3 Corporate Income Taxes 199.6 Imports 638.6 Government Expenditures | 1296.2 Rents 51.9 Transfer Payments 693.1 Exports 562.6 Indirect Business Taxes 447.4 Consumption of fixed capital (depreciation) 778.3 Net foreign factor income earned in the U.S. 33.7 Social Security Contributions 483.6 Interest 429.5 Personal Taxes 591.9 ....arrow_forward
- What can you analyse from the aspects regarding GDP?arrow_forwardI Consider a country that produces only wheat and corn. Based on the data in the table, calculate the country's real GDP for year 2008 (assume 2005 as the base year) is: Price of Wheat (per bushel) $56 Quantity of Wheat (million bushels) 1.250 1,360 1,420 1,500 Price of Corn Quantity of Corn Year 2005 2006 2007 2008 (per bushel) $44 (million tons) 910 64 1,050 1,120 1,260 52 72 55 62arrow_forwardUsing the following national income accounting data, compute (a) GDP, (b) NDP, and (c) NI. All figures are in billions. Category Billions Compensation of employees $226.2 U.S. exports of goods and services 19.8 Consumption of fixed capital 11.8 Government purchases 59.4 Taxes on production and imports 14.4 Net private domestic investment 52.1 Transfer payments 13.9 U.S. imports of goods and services 16.5 Personal taxes 40.5 Net foreign factor income 2.2 Personal consumption expenditures 249.1 Statistical discrepancy 0.0 Instructions: Round your answers to 1 decimal place. a. GDP = $ billion b. NDP = $ billion c. NI= $ billionarrow_forward
- Which of the following would be included in the U.S. GDP? the sale of a song written by a Californian to a customer in Kansas the sale of bolts to Ford to be used on the tires of the vehicles they sell the sale of 1,000 shares of IBM stockarrow_forwardTornadoes destroy many factories in the country, while a severe drought ruins many crops. Make a graph based off this event. (make sure you have a graph with 3 curves and identify the initial and resulting PL and GDP)arrow_forwardThe 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) MacBook Pro Grade It Now Save & Continue Continue without savingarrow_forward
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