Macroeconomics
13th Edition
ISBN: 9781337617390
Author: Roger A. Arnold
Publisher: Cengage Learning
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Question
Chapter 7, Problem 9WNG
(a)
To determine
Estimate the value of
(b)
To determine
Estimate the value of net domestic product (NDP):
(c)
To determine
Estimate the value of
(d)
To determine
Estimate the value of personal income
(e)
To determine
Estimate the value of disposable income.
(f)
To determine
Estimate the value of new residential housing.
(g)
To determine
Estimate the value of net exports.
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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.
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Answer the below question on the basis of the following data. All figures are in billions of dollars. Gross Private Domestic Investment $46 Exports of the U.S. 9 Disposable Income 190 Personal Saving 10 Government Purchases 84 Net Foreign Factor Income 10 Consumption of Fixed Capital 52 Dividends 13 Imports of the U.S. 12 Taxes on Production and Imports 22 Personal Taxes 38 Social Security Contributions 23 Statistical Discrepancy 0 The gross domestic product is: A. $307 B. $282 C. $326 D. $300
For the following question , please indicate whether current GDP of the United States will be affected and, if so, by how much .In each case, indicate also which component(s) of GDP will be affected and by how much
This month, a manufacturer in colorado sells $60,000 worth of t-shirts to a distributor in New York City, who sells them to the public. Then the New York distributor buys corporate bonds for a value of $10,,000, which promise to return $9400 one year from now.
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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- As an economist with the World Bank you have been asked to measure the Gross Domestic Product for the US for 2019. You are told that the private consumption, gross domestic investment, government purchases and exports all add up to $ 24 trillion. You later learn that imports to the US in 2019 were $4 trillion. To get GDP, you should A. Ignore the $ 4 trillion because exports have already been included in the $ 24 trillion B. Add $ 4 trillion to $24 trillion because imports are used as inputs in the production of other goods in the US C. None of the above D. Subtract $4 trillion from $24 trillion because imports are not part of US domestic outputarrow_forwardVan and Amy Cho live in Swarthmore, 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 C I G X M Amy gets a new video camera made in the United States. Van buys a sweater made in Guatemala. Amy's father in Sweden orders a bottle of Vermont maple syrup from the producer's website. Van's employer upgrades all of its computer systems using U.S.-made parts. The state of Pennsylvania repaves highway PA 320, which goes through the center of Swarthmore.arrow_forwardSuppose we have an economy where C = $30 Billion, I = $50 Billion, G = $20 Billion, Imports = $2 Billion, and Exports = $5 Billion. What is the trade balance this economy? a. What is the trade balance for this economy? NX = $ Billion b. What is the GDP for this economy? GDP = $ Billionarrow_forward
- The table below shows the values for several different components of GDP. Category Personal consumption expenditures Net foreign factor income Transfer payments Rents Consumption of fixed capital (depreciation) Statistical discrepancy Social Security contributions Interest Proprietor's income Net exports Dividends Compensation of employees Taxes on production and imports Undistributed corporate profits Personal taxes Corporate income taxes Corporate profits Government purchases Net private domestic investment Personal saving Imports Instructions: Enter your answers as whole number. a. What is the value of exports? $ b. What is the value of national income? $ 23 billion $ billion c. What is the GDP? billion d. What is the value of personal income? billion Billions of Dollars $ 250 3 10 15 25 12 18 12 31 10 14 228 16 19 24 17 50 70 31 18 13 2arrow_forwardUse the table to find GDI, GDP, gross private domestic investment, personal income, and personal disposable income. (All amounts in trillions of dollars.) Profit Indirect business taxes 2.8 .8 Rent .7 Interest Wages .8 8.2 Depreciation Consumption Government spending 1.3 11.0 1.8 Imports 1.7 Social Security contributions 2.0 Exports 1.5 Government transfer payments 2.0 Personal income taxes and nontax 1.7 payments Corporate taxes and retained .5 earnings GDI = 14.6 GDP = 14.6 ' , gross private domestic investment = 2, personal income = 12, personal disposable income= 10.3 Fill in numbers only; one decimal place; e.g. 10.0arrow_forwardUse the information in the table to answer the following questions. All numbers are in billions of 2012 dollars. Real GDP (Y) Consumption (C) Planned Investment (I) Government Purchases (G) Net Exports (NX) $15,000 $11,750 $1,500 $3,000 -$500 $16,000 $12,500 $1,500 $3,000 -$500 $17,000 $13,250 $1,500 $3,000 -$500 $18,000 $14,000 $1,500 $3,000 -$500 $19,000 $14,750 $1,500 $3,000 -$500 The equilibrium level of GDP is $ 18,000 billion. The MPC is (enter your response to two decimal places).arrow_forward
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