Macroeconomics (7th Edition)
7th Edition
ISBN: 9780134738314
Author: R. Glenn Hubbard, Anthony Patrick O'Brien
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Question
Chapter 8, Problem 8.2RDE
Subpart (a):
To determine
Difference between private domestic investment and residential and non-residential fixed private investment
Subpart (b):
To determine
Difference between private domestic investment and residential and non-residential fixed private investment
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Suppose GDP in this country is $480 million.
National Income Account
Value
(Millions of dollars)
Government Purchases (GG)
150
Taxes minus Transfer Payments (TT)
180
Consumption (CC)
225
Investment (II)
105
Complete the following table by using national income accounting identities to calculate private and public saving. In your calculations, use data from the initial table.
Private SavingPrivate Saving
=
(YTI, TG, YCT)
= =
?million
Public SavingPublic Saving
= =
(CT, TG, YCT, YTI)
= =
$million
how to find gross investment in the economy? is it correct if i add Net investment to Capital Consumption?
Gross Investment = Net investment + Capital Consumption
1. Calculate the values for the blanks in the shaded areas of the table below (identify your responses in a logical fashion in your document):
Expenditure Components of GDP by Country, 2018 (billions of US dollars)
Denmark Finland
Australia
Canada
India
Japan
New Zealand
UK
US
Consumption
808.7
996.9
165.9
146.1
1650.6
2763.3
120.0
1870.5
13998.7
Investment
Business fixed investment
336.9
385.1
78.8
65.6
842.7
1202.5
49.1
487.3
4260.7
Changes in inventories
0.1
9.4
2.9
3.4
27.4
11.2
0.1
5.8
54.7
Government
275.5
357.1
86.6
62.7
312.1
981.6
38.4
528.3
2904.3
Net Exports
Exports
Imports
348.5
544.9
197.9
106.8
548.6
917.1
58.2
856.8
2510.2
312.0
581.1
176.4
108.8
657.0
904.4
58.1
907.1
3148.5
GDP
Source: UNData, UN Statistics Division, data.un.org, GDP by Type of Expenditure at current prices – US dollars
2. Based on the information in the table and your calculations for Question #1:
Do any countries have positive net exports?
Which one(s)?
Which country has the largest negative net…
Chapter 8 Solutions
Macroeconomics (7th Edition)
Ch. 8 - Prob. 8.1.1RQCh. 8 - Prob. 8.1.3RQCh. 8 - Prob. 8.1.4RQCh. 8 - Prob. 8.1.5RQCh. 8 - Prob. 8.1.6PACh. 8 - Prob. 8.1.7PACh. 8 - Prob. 8.1.8PACh. 8 - Prob. 8.1.9PACh. 8 - Prob. 8.1.10PACh. 8 - Prob. 8.1.11PA
Ch. 8 - Prob. 8.1.14PACh. 8 - Prob. 8.2.1RQCh. 8 - Prob. 8.2.2RQCh. 8 - Prob. 8.2.3RQCh. 8 - Prob. 8.2.4PACh. 8 - Prob. 8.2.9PACh. 8 - Prob. 8.2.10PACh. 8 - Prob. 8.3.1RQCh. 8 - Prob. 8.3.2RQCh. 8 - Prob. 8.3.3RQCh. 8 - Prob. 8.3.4PACh. 8 - Prob. 8.3.5PACh. 8 - Prob. 8.3.6PACh. 8 - Prob. 8.3.7PACh. 8 - Prob. 8.3.8PACh. 8 - Prob. 8.3.9PACh. 8 - Prob. 8.3.10PACh. 8 - Prob. 8.4.1RQCh. 8 - Prob. 8.4.3RQCh. 8 - Prob. 8.4.4PACh. 8 - Prob. 8.4.6PACh. 8 - Prob. 8.4.7PACh. 8 - Briefly discuss the accuracy of the following...Ch. 8 - Prob. 8.1RDECh. 8 - Prob. 8.2RDECh. 8 - Prob. 8.6RDECh. 8 - Prob. 8.7RDE
Knowledge Booster
Similar questions
- Last year, a small nation with abundant forests cut down 200 worth of trees. It then turned 100 worth of trees into 150 worth of lumber. It used 100 worth of that lumber to produce $250 worth of bookshelves. Assuming the country produces no other outputs, and there are no other inputs used in producing trees, lumber, and bookshelves, what is this nations GDP? In other words, what is the value of the final goods the nation produced including trees, lumber and bookshelves?arrow_forward1. Calculate the values for the blanks in the shaded areas of the table below (identify your responses in a logical fashion in your document): Expenditure Components of GDP by Country, 2018 (billions of US dollars) Australia Canada Denmark Finland India Japan New Zealand UK US Consumption 808.7 996.9 165.9 146.1 1650.6 2763.3 120.0 1870.5 13998.7 Investment Business fixed investment 336.9 385.1 78.8 65.6 842.7 1202.5 49.1 487.3 4260.7 Changes in inventories 0.1 9.4 2.9 3.4 27.4 11.2 0.1 5.8 54.7 Government 275.5 357.1 86.6 62.7 312.1 981.6 38.4 528.3 2904.3 Net Exports 917.1 58.2 Exports Imports 348.5 544.9 197.9 106.8 548.6 856.8 2510.2 312.0 581.1 176.4 108.8 657.0 904.4 58.1 907.1 3148.5 GDP Source: UNData, UN Statistics Division, data.un.org, GDP by Type of Expenditure at current prices – US dollarsarrow_forward+ Given below is the values of an ABC economy for the year 2020. COMPONENTS OF GDP Personal consumption expenditures (C) 10,100 Gross private domestic investment (1) 1,600 Government consumption and gross investment (G) Net exports (EX – IM) ? 300 Durable goods 1,000 Nondurable goods ? Services 6,800 Nonresidential 1,300 Residential ? Change in business inventories -100 Federal 1,100 State and local 1,700 Exports (EX) 1,900 Imports (IM) ? Gross domestic product 1. You are required to calculate GDP for the year 2020 for ABC economy using the expenditure method.arrow_forward
- Suppose GDP in this country is $660 million. Enter the amount for government purchases. National Income Account Government Purchases (G) Taxes minus Transfer Payments (T) Consumption (C) Investment (I) Private Saving = Complete the following table by using national income accounting identities to calculate national saving. In preceding table. National Saving (S) = $ Public Saving = $ = $ Value (Millions of dollars) Complete the following table by using national income accounting identities to calculate private and public saving. In your calculations, use data from the initial table. million million million 195 300 210 calculations, use data from the Based on your calculations, the government is running a budgetarrow_forward5 GDP (Y) Consumption (C) Investment (I) $ 0 $ 60 $ 30 100 120 40 200 180 50 300 240. 60 400 500 300 360 70 BO (Advanced analysis) The table gives data for a private closed economy. The letters Y, C, S, and /are used to represent real GDP, consumption, saving, and Investment, respectively. The equation representing the Investment schedule for the economy is O Multiple Choice 1=0.3Y /= 80-03Y =30+0.1Y 10-30arrow_forward1. What are the two major differences between the CPl and the GDP deflator index? (5 marks) 2. Define private saving, public saving, national saving, and investment. How are they related? (5 marks) 3. Give an example of an event that would shift the aggregate-demand curve. Which way would this event shift the curve? (5marks) 4. a. What are the four expenditure components of Gross Domestic Product (GDP)? Explain each of these. (10 marks) B. Define real GDP and nominal GDP. Which is a better measure of economic well-being? (10 marks) 5 a) Explain briefly what the consumer price index measures and how it is constructed. (10 marks) b) Describe the three problems that make the consumer price index an imperfect measure of the cost of living. (10 marks)arrow_forward
- Please explain the relationships between interest rates, expected rates of return, investment, and GDP. Be specific and be thorough.arrow_forwardThe following table shows the composition of GDP in 2015 for a hypothetical country. Complete the table by recording values for GDP, residential investment, and net exports. (Enter your responses as integors and use minus signs if necessary.) The Composition of GDP, 2015 Billions of Dollars GDP (Y) Consumption (C) 11,486 2 Investment () 2,431 Nonresidential 1,889 Residential 3 Government spending (G) 3,057 4 Net exports Exports (X) 2,435 Imports (IM) 2,868 5 Inventory investment 77arrow_forwardb) Based on the information given in the table below, calculate the value of Net Domestic Product (NDP) of Country X. ITEM $(millions) Household Consumption 2,780 Depreciation of capital goods 365 Factor income received from abroad 580 Government investment 824 Exports 663 Imports 790 Factor income paid to abroad 525 Gross private domestic investment 894 Government Consumption 347 Transfer Payments 1,109 c) What is the difference between 'flow' and 'stock'? d) Explain three shortcomings of using GDP to measure the size of the economy.arrow_forward
arrow_back_ios
arrow_forward_ios
Recommended textbooks for you
Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
Economics: Private and Public Choice (MindTap Cou...EconomicsISBN:9781305506725Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage Learning
Macroeconomics: Private and Public Choice (MindTa...EconomicsISBN:9781305506756Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage Learning
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning
Economics: Private and Public Choice (MindTap Cou...
Economics
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning
Macroeconomics: Private and Public Choice (MindTa...
Economics
ISBN:9781305506756
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning