Brief Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN: 9781337091985
Author: N. Gregory Mankiw
Publisher: Cengage Learning
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Question
Chapter 5, Problem 4CQQ
To determine
The purchase of imported commodities on national account transactions.
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An American buys a pair of shoes made in Italy.How do the U.S. national income accounts treatthe transaction?a. Net exports and GDP both rise.b. Net exports and GDP both fall.c. Net exports fall, while GDP does notchange.d. Net exports do not change, while GDPrises.
Define net exports. Explain how U.S. exports and imports each affect domestic production. Suppose foreigners spend $7 billion on U.S. exports in a specifific year and Americans spend $5 billion on imports from abroad in the same year. What is the amount of the United States’ net exports? Explain how net exports might be a negative amount.
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
|
M
Chapter 5 Solutions
Brief Principles of Macroeconomics (MindTap Course List)
Ch. 5.1 - Prob. 1QQCh. 5.2 - Prob. 2QQCh. 5.3 - Prob. 3QQCh. 5.4 - Prob. 4QQCh. 5.5 - Prob. 5QQCh. 5 - Prob. 1CQQCh. 5 - Prob. 2CQQCh. 5 - Prob. 3CQQCh. 5 - Prob. 4CQQCh. 5 - Prob. 5CQQ
Ch. 5 - Prob. 6CQQCh. 5 - Prob. 1QRCh. 5 - Prob. 2QRCh. 5 - Prob. 3QRCh. 5 - Prob. 4QRCh. 5 - Prob. 5QRCh. 5 - Prob. 6QRCh. 5 - Prob. 7QRCh. 5 - Prob. 8QRCh. 5 - Prob. 1PACh. 5 - Prob. 2PACh. 5 - Prob. 3PACh. 5 - Prob. 4PACh. 5 - Prob. 5PACh. 5 - Prob. 6PACh. 5 - Prob. 7PACh. 5 - Prob. 9PACh. 5 - Prob. 10PACh. 5 - Prob. 11PACh. 5 - Prob. 12PA
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- Between 2014 and 2015, the exports of the U.S. economy decreased by $5 billion and its imports increased by $5 billion. All else equal? By how much has the GDP changed between the two years? Select one: a. None of the answers are correct b. The change in net exports will increase GDP by $5 billion. c. The change in net exports will decrease GDP by $5 billion. d. The change in net exports will decrease GDP by $10 billion. e. The decrease in exports is offset by the decrease in imports, so there is no change in net exports and no effect on GDP.arrow_forwardWhat” the most important aspect of consumption, investment, government spending, and net exports in an economy?arrow_forwardIn an economy, Exports = $2100 million Imports = $1750 million Calculate net exportsarrow_forward
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