Macroeconomics
13th Edition
ISBN: 9781337617390
Author: Roger A. Arnold
Publisher: Cengage Learning
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Question
Chapter 7, Problem 6WNG
To determine
Explain Country U’s market using the circular flow diagram.
Expert Solution & Answer
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Students have asked these similar questions
Is it true that the value of U.S. imports is added to exports when calculating U.S. GDP because imports reflect spending by Americans? Explain.
People sometimes argue that imports should be limited by government policy. Suppose a government quota on the quantity of imports causes net exports to rise. Using the circular flow diagram as a guide, explain why total expenditures and national output may rise after the quota in imposed. Who is likely to benefit from the quota? Who will be hurt?
The table below shows nominal GDP, exports, and imports for the United States.
Nominal GDP, Exports, and Imports
Year
2015
2016
Nominal GDP
Exports
Imports
(billions of (billions of (billions of
dollars)
$2,308.0
2,334.1
LA
dollars)
$16,981.9
17,601.1
Instructions: Round your answers to one decimal place. If you are entering a negative number include a minus sign.
a. Calculate the value of net exports in 2015.
billion
b. Calculate the value of net exports in 2016.
billion
dollars)
$2,759.7
2,878.3
Chapter 7 Solutions
Macroeconomics
Ch. 7.1 - Prob. 1STCh. 7.1 - Prob. 2STCh. 7.2 - Prob. 1STCh. 7.2 - Prob. 2STCh. 7.2 - Prob. 3STCh. 7.4 - Prob. 1STCh. 7.4 - Prob. 2STCh. 7.4 - Prob. 3STCh. 7 - Prob. 1QPCh. 7 - Prob. 2QP
Ch. 7 - Prob. 3QPCh. 7 - Prob. 4QPCh. 7 - Prob. 5QPCh. 7 - Prob. 6QPCh. 7 - Prob. 7QPCh. 7 - Prob. 8QPCh. 7 - Prob. 9QPCh. 7 - Prob. 10QPCh. 7 - Prob. 11QPCh. 7 - Prob. 12QPCh. 7 - Prob. 13QPCh. 7 - Prob. 14QPCh. 7 - Prob. 1WNGCh. 7 - Prob. 2WNGCh. 7 - Prob. 3WNGCh. 7 - Prob. 4WNGCh. 7 - Prob. 5WNGCh. 7 - Prob. 6WNGCh. 7 - Prob. 7WNGCh. 7 - Prob. 8WNGCh. 7 - Prob. 9WNGCh. 7 - Prob. 10WNGCh. 7 - Prob. 11WNG
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Similar questions
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- Which of the following best defines aggregate demand? It is the total amount spent by all consumers, business firms, and foreigners on domestic goods and services It is the total demand for the intermediate and final goods produced in a country by foreign consumers It is the total demand for all intermediate and final goods produced in a country It is the total amount spent by domestic consumers on foreign goods and servicesarrow_forwardUsing the domestic goods demand and net exports graphs, illustrate graphically and explain the effects of a decrease in taxes on output, exports, imports, and net exports. Label all the curves, the initial and new equilibrium points.arrow_forwardDiscuss which of the following fall into the categories of consumption, investment, government expenditure and net exports from the Y = C + I + G + NX (X – M) identity, and whether the impact is to increase or decrease GDP.Thomas buys a new housearrow_forward
- Consider the following hypothetical data for the U.S. economy in 2018 (all amounts are in trillions of dollars; see pages 179–182).Consumption 11.0 Indirect business taxes .8 Depreciation 1.3 Government spending 3.8 Imports 2.7 Gross private domestic investment 4.0 Exports 2.5e. Based on the data, what is GDP? NDP? NI?f. Suppose that in 2019, exports fall to $2.3 trillion, imports rise to $2.85 trillion, and gross private domestic investment falls to $3.25 trillion. What will GDP be in 2019, assuming that other values do not change between 2018 and 2019?arrow_forwardDiscuss which of the following fall into the categories of consumption, investment,government expenditure and net exports from the Y= C+ I + G + NX (X - M) identity , and sheathed the impact is to increase or decrease GDP a) Charles buys a second hand textbook from Tim b) when Charles bought the book, he paid Sarah $10 to collect it from tim c) Thomas buys a new house d) your firm sells meat to Indonesia e) the fish and chips shop down the road buys fish to make meals for dinner f) the same shop buys deep fryer to fry fish for mealsarrow_forwardWhen a U.S. consumer buys Canadian maple syrup at the grocery store, this purchase is:A) an importB) an exportC) gross domestic productD) a transfer payment. Below is economic data for Germany for 2016 (measured in billions of current euros). What was total spending? Consumption 1,649.79 Investment 636.42 Government spending 620.01 Exports 1,442.41 Imports 1,211.64 A) 2,675B) 4,348C) 2,906D) 3,137 Please ans both questions and you will get thumbs up.arrow_forward
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