Sub-part
A
The value of GDP.
Concept Introduction:
GDP (
The Net domestic product (NDP) is defined as difference between the gross domestic product (GDP) and the depreciation on a country's capital goods.
Sub-part
B
The value of Net domestic Product.
Concept Introduction:
GDP (Gross Domestic Product): It is the value of total goods and services produced in a country in a year.
The Net domestic product (NDP) is defined as difference between the gross domestic product (GDP) and the depreciation on a country's capital goods.
Sub-part
C
The value of net investments.
Concept Introduction:
GDP (Gross Domestic Product): It is the value of total goods and services produced in a country in a year.
The Net domestic product (NDP) is defined as difference between the gross domestic product (GDP) and the depreciation on a country's capital goods.
Sub-part
D
The value of net exports.
Concept Introduction:
GDP (Gross Domestic Product): It is the value of total goods and services produced in a country in a year.
The Net domestic product (NDP) is defined as difference between the gross domestic product (GDP) and the depreciation on a country's capital goods.
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Chapter 6 Solutions
Econ Macro (book Only)
- What are the main components of measuring GDP with what is produced?arrow_forward4. Measuring GDP The following table shows data on consumption, investments, exports, imports, and government expenditures for the United States in 2018, 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) 13,948.5 Investment (I) 3,650.1 Exports (X) 2,531.3 Imports (M) 3,156.7 Net Exports of Goods and Services Government Purchases (G) 3,520.8 Gross Domestic Product (GDP)arrow_forward4. Measuring GDP he following table shows data on consumption, investments, exports, imports, and government expenditures for the United States in 2014, 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) 11,930.3 Investment (I) 2,851.6 Exports (X) 2,337.0 Imports (M) 2,875.2 Net Exports of Goods and Services Government Purchases (G) 3,175.2 Gross Domestic Product (GDP) 12:57 PMarrow_forward
- Exhibit: Components of GDP for an Economy 1 Personal consumption expenditures Gross private domestic investment Net exports Imports Government purchases of goods and services Transfer Payments Value (in billions) (S) $480 billion O-$480 billion $120 billion -$120 billion 1,000 500 300 180 280 90 (Exhibit: Components of GDP for an Economy 1) What is the value of exports?arrow_forward4. Measuring GDP The following table shows data on consumption, investments, exports, imports, and government expenditures for the United States in 2020, 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. Consumption (C) Investment (I) Exports (X) Imports (M) Net Exports of Goods and Services Government Purchases (G) Gross Domestic Product (GDP) Data (Billions of dollars) 14,047.6 3,637.8 2,123.4 2,774.6 3,859.5arrow_forward2. Activities included (and not included) in the calculation of GDP The gross domestic product (GDP) of the United States is defined as the all in a given period of time. Based on this definition, indicate which of the following transactions will be included in (that is, directly increase) the GDP of the United States in 2020. Scenario Billy Bonka's, a German chocolate company, produces a chocolate bar at a plant in Pennsylvania on December 1, 2020. A high schooler buys the chocolate bar on December 28. Gamewear, a U.S. electronics company, produces a VR headset at a plant in South Korea on March 20, 2020. Gamewear imports the VR headset into the United States on May 25, 2020. Rotato, a U.S. tire company, produces a set of tires at a plant in Michigan on September 10, 2020. It sells the set of tires to Speedmaster for use in the production of a two-door coupe that will be made in the United States in 2020. (Note: Focus exclusively on whether production of the set of tires increases GDP…arrow_forward
- 4 The components of GDP (2020) in the accompanying table were produced by the Bureau of Economic Analysis. (15) Category Consumer spending Durable goods Nondurable goods Services Private investment spending Fixed investment spending Nonresidential Structures Equipment Intellectual Property Products Residential Change in private inventories Net exports Exports Imports Government purchases of goods and services and investment spending Federal National defense Nondefense State and local a. Calculate consumer spending. (billions of current dollars). $1,616.4 3,037.4 9,393.7 _3,697.4 2,799.6 _597.2 1,123.9 1,078.5 897.8 -59.6 2,123.4 2,774.6 1,501.8 881.3 620.5 2,357.8 b. Calculate private investment spending. c. Calculate net exports. d. Calculate government purchases of goods and services and investment spend e. Calculate gross domestic productarrow_forward10 In the expenditure approach, the total expenditures of the following entities are calculated, except a. Gross taxable incomes b. Gross private domestic investment c. Government expenditures d. Net Exportsarrow_forwardA) How does consumption affects GDP? [[ GDP = Gross Domestic Product ]]arrow_forward
- 6. Limitations of GDP Although GDP is a reasonably good measure of a nation's output, it does not necessarily include all transactions and production for that nation. Which of the following scenarios are either not accounted for or measured inaccurately by either the income or the expenditure methods of calculating GDP for the United States? Check all that apply. Expenditures on federal highways The value of babysitting services, when the babysitter is paid in cash and the transaction isn't reported to the government The quality of goods available to consumers The loss of enjoyment people incur when scenic land is converted to commercial use When a U.S. company purchases and imports wood from Brazil to use to build new houses within the United States, this purchase increases the component of GDP while also net exports by the same amount. Therefore, the purchase of wood from Brazil causes in US GDP.arrow_forward(Japan: stages in the production and sale of a TV) Stage Components manufacture Assembly Wholesaler Retailer Price $120 $200 $400 $450 7. If Japan produces one TV, John argues Japan's GDP is equal to the sum of all prices. Briefly explain (in one or two paragraphs) why the argument is correct or incorrect. 8. How much value does the Assembly sector create? 9. If Japan produces one TV, how much is its GDP? Why? ULATEarrow_forward6) The following table describes the economic activities of a hypothetical economy in a given vear. Calculate the value-added at each step of the economic activities and its contribution to GDP. Item Seller Buyer Price ($) Value added ($) Kilogram of Farmer Factory 6 Lemons Liter of lemon juice Liter of lemon juice used as salad dressing Factory Restaurant 10 Restaurant Consumers 16arrow_forward
- Principles of Economics 2eEconomicsISBN:9781947172364Author:Steven A. Greenlaw; David ShapiroPublisher:OpenStax