A. a. 1. Given two of these values below, calculate the third. To find the surplus or shortage take 1st Column of Bushel Demanded - 2nd Column of Bushel demand = Surplus or Shortage Rearranging the equation to solve for G reveals that G = GDP - C - Ig - Xn. Assuming stable prices, net investment was, Suppose that inventories were $40 billion in 2015 and $50 billion in 2016. add exports, but subtract imports, in calculating GDP. 7% b. $_______ Personal consumption expenditures $245 An increase in the stock market's value. The Bureau of Economic Analysis (BEA) in the Department of Commerce compiles GDP statistics. Government purchases 20 If these rates continue for long periods of time, how many years will it take for the follower country to catch up to the living standard of the leader country? j. a. Personal consumption expenditures 60 Purchases of stocks and bonds 30 Net Exports -10 Government purchases 20 sales of secondhand Items 8 Gross Investments 25 What is the country's GDP for the year? Quantity Produced: 5 Assume the firm can sell these 400 loaves at $2 per unit. The first step is to find the value of each good consumed. The following are examples of final goods in national income accounting, except, Lumber and steel beams purchased by a construction company, A nation's exports of goods and services exceed its imports. Sales of secondhand items: 8 The constant a represents the vertical intercept, and b represents the slope of the consumption schedule. For example, in year 1, the price of a quart of ice cream is $4.00. Finally, Emily and Rhonda trading an hour of dance lessons for a haircut in Dallas will not have any effect on GDP because their trading of one service for another does not involve money and, hence, does not generate a paper trail for the accountants who compile the GDP statistics. 200 Jars of peanut butter 2.00 3 2.00 2 How many fewer workers will it need if it decides to match production to these lower sales? Compensation of employees $194.2 Other things being equal, the price level must have changed by about. .g.) Briefly explain why? GDP per capita in year 1 = $300 (=$30,000/100). c. Suppose that the amount of saving that occurs at each level of national income falls by $20 but that the values of b and (1 - b) remain unchanged. a. MPC = Nominal GDP = Real GDP x (price index/100), Find the Price Index: Suppose that the cost of cheese falls, so that the marginal cost of producing pizza decreases. Her biweekly salary is $3,010. 6 mil(200,000 *30)= 6mil. Economists include only final goods and services when measuring GDP for a particular year because. e. Suppose that at a price of $6, the total quantity demanded increases from 19 to 38. Explanation 85 million 14 years (70/5) b. (0.08*500)=40. What is Savannah's annual salary? (GDP figures are in billions of dollars.) (5+3+4-1-2+2+3+4+6+3)/10=2.7 As a result, investment. National income (NI) $334.1 Real GDP 1968 = $929.8/(24.01/100) = $3,872.55 (Inflating), Chapter 27. What was the GDP price index for the economy in year 2? In 2005, real GDP =. 2.7% Dividends: $16 b. Output and price data for a five-year period are shown in the table. We observed . February 3, 2023. The table contains data for a hypothetical single-product economy. . Statistical discrepancy 0 Cause and Effect What argument in favor of the 26th Amendment was considered crucial to its quick ratification? Measuring Domestic Output and Nat, Fundamentals of Engineering Economic Analysis, David Besanko, Mark Shanley, Scott Schaefer, Statistical Techniques in Business and Economics, Douglas A. Lind, Samuel A. Wathen, William G. Marchal. Category Personal consumption expenditures Purchases of stocks and bonds Net exports Government purchases Sales of secondhand items Gross investment Billions of Dollars $ 70 30 -10 30 8 25 Instructions: Enter your answer as a whole number. Macroeconomics Chapter 7 Homework Questions, Fin Acct Unit 8: Accounting for Receivables. Demand Graph : ( 1st Column of Bushels Demand, Price per Bushel highest to low)Supply Graph ( 2nd column, price per bushel, low to high) Use the blue points (circle symbol) to plot the real GDP in each of the years listed. The questions that follow ask you to determine the major national income measures by both the expenditures and the income approaches. Gross domestic product does not include the value of the stocks and bonds bought and sold because these sales and purchases are not. If work hours increase to 210 in year 2 and productivity rises to $10 per hour, what is New Zombie's rate of economic growth? Suppose GDP is $15 trillion, with $8 trillion coming from consumption, $2.5 trillion coming from gross investment, $3.5 trillion coming from government expenditures, and $1 trillion coming from net exports. Gross domestic product (GDP) $343.7 [$100,000 + {$0.50 x 1000}] / 1000) She estimates the costs for the necessary land, labor, and capital to be $395,000 per year. arrow_forward Literature guides Concept explainers Writing guide Popular textbooks Popular high school textbooks Popular Q&A Business Accounting Economics Finance Leadership Management Marketing Operations Management Engineering Bioengineering Chemical Engineering Civil Engineering Computer Engineering Computer Science Electrical Engineering . The following table shows the data for a hypothetical economy in a specific year. a. Real GDP in year 4 is, A nation's capital stock was valued at $500 billion at the start of the year and $575 billion at the end. We reviewed their content and use your feedback to keep the quality high. Bottles of shampoo 3.00 1 3.00 3.00 2 6.00 Which of the following transactions would count in GDP? (c) Net foreign factor income earned in U.S. 2.2 NDept. (f) R=1%,i=10%R=1 \%, i=10 \%R=1%,i=10%. ODept. What is Upper Mongoose's GDP for the year? c. In the fourth column (gray-shaded cells) of the table in part a, enter the amount by which the quantity supplied at each price changes due to the increase in product costs. To measure changes in the value of production and income in the economy, Depreciation is all of the following, except, By summing the dollar value of all market transactions in the economy, we would, obtain a sum substantially larger than the GDP, The base year of the price index given in the accompanying table is, GDP in an economy is $11,050 billion. If the yield on 333-year Treasury bonds equals the 111-year yield plus 2%2 \%2%, what inflation rate is expected after Year 111? GDP using the income approach = $ 388billion223+14+13+33+56+18+27+8-4= 388 The financial statements of Coca-Cola and PepsiCo are presented in Appendices C and D, respectively. Fill in the missing values (gray-shaded cells) in the table.Add the individual quantities demanded Finally, when Amy buys a used car, there is no increase in currently produced final goods and services. Net exports :-10 The nominal value of the goods for year 2 is $30.00 (= $20.00 + $6.00 + $4.00). Rated Helpful. b. NDP = $ 331.9 billion GDP in year 2 is, The economy described in the table has experienced a, Over a year, a nation's GDP at current prices rose by 15 percent, while the price index increased from 100 to 110. Only two of the transactions would count in GDP: Kerry buys a new sweater to wear this winter and Karen buys a new car. To help partially defray the cost of this expansion, BBQ issues and sells 200,000 shares of stock at $30 per share. (50+25+20+(-10))= 85, Below is a list of domestic output and national income figures for a certain year. Gross domestic product is. All figures are in billions of dollars. \end{array} 3. With these two flows happening simultaneously, the net (combined) change in the stock of capital is going to be $100,000 because we have a flow of $150,000 of gross investment increasing the stock of capital while at the same time we have a flow of $50,000 of depreciation decreasing the stock of capital. A similar thing holds true when Roberto gives his daughter $50 for her birthday. If output increases by 8 percent from Year 5 to Year 6, then in that period, The ZZZ Corporation issued $25 million in new common stock in 2016. What government agency compiles the U.S. NIPA tables? What is the economy's MPC? SalesExpensesAvoidableUnavoidableTotalexpensesNetincome(loss)Dept. The current year per-unit prices of these three goods are A = $2, B = $3, and C = $1. b. MPS = For example, the receipt by Patricia of a Social Security check does not involve the production of anything at all. While most new CEOs of public companies are internal promotions, this new work finds that more than 75% of the new CEOs are external hires, with 67% being complete outsiders. This calculation is applied to each good for each year. GDP using the expenditures approach = Proprietors' income: $33 5th row: 23+5+8=36 TQD a. Real GDP that year was, (Advanced analysis) Only three goods are produced in an economy in the following amounts: A = 10, B = 30, C = 5. Measuring Domestic Output and Nat, HC TING ANH GIAO TIP: 1001 CU THNG DNG, Fundamentals of Engineering Economic Analysis, David Besanko, Mark Shanley, Scott Schaefer, Alexander Holmes, Barbara Illowsky, Susan Dean. The following table shows the data for a hypothetical economy in a specific year. NDP = $388 - $27 = $361 billion. Personal consumption expenditures :$50 Which of the following activities is excluded from GDP, causing GDP to understate a nation's well-being? Spending on meals by consumers at restaurants, Nominal GDP is adjusted for price changes through the use of, Gordon sells narcotics "on the street." Taking into account the fact that a "negative times a negative is a positive," we see that G = $20 billion. Real GDP in year 4 is 450 In the economy described in the table, . $4 1 5% Assume these are the only two items produced in this economy. Social Security payments received by a retired factory worker: ), 28 years A nation's capital stock was valued at $500 billion at the start of the year and $575 billion at the end. How big a surplus or shortage results if the price is 60 cents higher than the equilibrium price?There is a surplus of 14 thousand bushels Other things equal, the information suggests that the production capacity in economy. Real GDP = Nominal GDP/Price Index, Find the Nominal GDP: 13. What is the country's GDP for the year? The following table shows hypothetical values for the real GDP and population in the United States in 2007-2016. Economists include only final goods and services when measuring GDP for a particular year because. b. Over a period of time, a nation's GDP increases by 8 percent in constant-price terms and by 6 percent in current-price terms. The results of National Bureau of Statistics (2021) show that the size of China's migrant population reached 376 million people. c. Supply increases and demand is constant. Real GDP in year 4 was approximately. double 14 (14+14) =28. Assuming that all prices remain constant, what is this country's new level of GDP? d.DI= 265 billion To see why this is true, we can rearrange the GDP equation, which is normally presented as GDP = C + Ig + G + Xn. All figures are in billions of dollars. c. Assume, once again, that the quantities produced and the prices of the three goods are as listed in the table. Refer to the accompanying national income data. We have the following table summarizing these steps. In the other, she will try to develop an Internet-based competitor to the local cable company. In 2005, real GDP = 352,000 One is gross investment, which increases the stock of capital. Suppose that in 1984 the total output in a single-good economy was 12,000 buckets of chicken. Which of the following is not economic investment? \text {Expenses} The following table shows some information on a hypothetical economy. The following table shows the data for a hypothetical economy in a specific year. What is the economic meaning of b? To account for the effects of inflation, we construct a price-level index in which an index value of 100 represents the price level five years ago. (NDP: GDP- Consumption of fixed capital)=388-27= 361 Dividends 16 Demand decreases and supply is constant. PI= 357-18-20-19-21+12= 291 Refer to the figures below and assume that price is fixed at $37,000 and that Buzzer Auto needs 5 workers for every 1 automobile produced. 2 Use the companies financial information to answer the following questions. GDP using the expenditures approach = $ 388 billion245+33+27+72+11= $388 a. How will an increase in state subsidies to public colleges affect the market for public and private colleges? Assume an economy that makes only one product and that year 3 is the base year. Think abstractly 16. Economic fluctuations and growth The following table shows data on a hypothetical country's real GDP from 1990 through 1998: Real GDP (Billions of Dollars) Year 1990 186 1991 188 190 1992 1993 194 1994 1995 1996 202 198 196 200 1997 1998 The green line on the following graph shows the economy's long-term growth trend. Instructions: Enter your answer as a whole number. $10.5 trillion: The correct answer to this question is that disposable income will be $10.5 trillion. The retailer, in turn, brings in $160,000 from selling the bulbs directly to final customers. If it is 11 percent? a. Also assume that Ig = $30 billion, C = $60 billion, and Xn = - $10 billion. $100 million, A mathematical approximation called the rule of 70 tells us how long it will take for something to double in size if it grows at a constant rate. 0.8 you should strictly prefer (8, 8) to (12, 4) and (4, 12). Apply the rule of 70 to solve the following problem: Real GDP per person in Panama in 2017 was about $15,000 per person, while it was about $60,000 per person in the United States. Which of the following statements is true? The annual output and prices of a 3-good economy are shown in the table below. Indicate in each calculation whether you are inflating or deflating the nominal GDP data. GDP using the income approach = 388 billion Name and describe two markets that are part of the financial system in the U.S. economy. Quantity Produced: 20 \end{array} You cannot pass on a tooth extraction! supply will shift to the right. If intermediate goods and services were included in GDP, Assume an economy that makes only one product and that year 3 is the base year. a. if intermediate goods were counted, then multiple counting would occur. the economy's stock of capital is shrinking. f.) 0.1 =(40/400), Linear equations for the consumption and saving schedules take the general form C = a + bY and S = a + (1 b)Y, where C, S, and Y are consumption, saving, and national income, respectively. 2 mil= (200,000*10) 0 b. \text {Purchase} \\ By using their emergency response fund, much of which is funded through private philanthropy, the IRC was able to respond immediately to the crisis, assessing what the need is and the role it could play in helping impacted communities. The per-unit cost of an item is its average total cost (= total cost/quantity). d. Demand increases and supply increases. If households receive $60 billion in wages, $10 billion in rent, and $20 billion in interest, how much are households paid for providing entrepreneurial ability? Economy C: gross investment exceeds depreciation P}&\textbf{Dept. Together with the availability of economic freedom data, governing intervals determine the period of analysis for each country. Firm A Wages paid to employees Taxes paid to government Input purchased from Firm C Revenue received Sold to Public (newly produced) Sold to Government Sold to Firm C Sold from inventory to Public Unsold production After-tax profit Firm B Wages paid to employees Taxes paid to government Input purchased . A dining room table, a. C= 100+0.6Y What is RRR ? This memorandum surveys U.S. economic sanctions and anti-money laundering ("AML") developments and trends in 2022 and provides an outlook for 2023. e. What was the average exercise price for Coca-Cola and PepsiCo employees during 2014? Refer to the accompanying national income data. Using the above data, determine GDP by both the expenditures approach and the income approach. Since nothing is produced, her stock sale would also be excluded from GDP. ($305.88 - $300)/300). Also suppose that in 1984 each bucket of chicken was priced at $10. To answer this question, evaluate the following statement: "In 1933 net private domestic investment was minus $6 billion. Explanation All figures are in billions of dollars. 400 320, a.) f. Money received by Josh when he resells his nearly brand-new Honda automobile to Kim: Both methods will give us the same answer. Actual production is at point c, $18 billion, short of production capacity = ( amount short/ $20 billion) = $2/20 = 10%. In determining real GDP, the nominal GDP for. Thus, the GDP of a closed economy is computed using the formula; GDP = Consumption + Investment + Government purchases. All figures are in billions of dollars. What technique will you want to use if the price of a bar of soap falls to $2.75? Use the figure to fill in the quantity supplied given supply curve S1 for each price in the following table (second column, gray-shaded cells). If the per-unit prices of the three goods were each $1 in a base year used to construct a GDP price index, then real GDP in the current year is, Refer to the accompanying national income data (in billions of dollars). b. What was the APC after the increase? c. What were the amounts of real GDP in 1984 and 2005? $1,000.50 If potential GDP is $500 billion in that year, how much output is forgone because of cyclical unemployment? billion. What was this economy's GDP in year 1? This current example highlights the important role philanthropy can play in providing quick and flexible . First week only $4.99! Personal consumption expenditures:$219.1 All figures are in billions of dollars. \end{array} & \begin{array}{c} Right triangle corollary. c. NI = $331.9 (NDP) + $2.2 (net foreign factor income) - $0 (statistical discrepancy) = $334.1 billion. Thus, GDP equals $85 billion for this country (= $50 billion + $25 billion + $20 billion + (- $10 billion)). d. Included: Payment for a final service. Row 3: 12+3+4= 19TQD Compute real GDP. a. incorrect, because negative net investment does not mean the economy produced no new capital goods in that year. APC= New consumption/ new disposable income168/220=0.764, ADVANCED ANALYSIS Suppose that the linear equation for consumption in a hypothetical economy is C = 40 + 0.8Y.Also suppose that income (Y) is $400. Refer to the following production possibilities table for consumer goods (automobiles) and capital goods (forklifts): a. Assume that a grower of flower bulbs sells its annual output of bulbs to an Internet retailer for $80,000. Net exports (Xn) (17.8 - 16.5) 1.3 Quarts of ice cream $4.00 3 $4.00 5 In an economy that has stationary production capacity, (Last Word) The U.S. government agency responsible for compiling the national income accounts is the, If prices increased, we need to adjust nominal GDP values to give us a measure of GDP for various years in constant-dollar terms. How big is the surplus or shortage at $4.90?There is a surplus of 18 thousand bushels. 31.25% Step 4/4. 5. Price Index = Nominal GDP/Real GDP. From this information we can conclude that the net foreign factor income is. The annual output and prices of a 3-good economy are shown in the table below. All values are in millions. GDP per capita in year 2 = $305.88 (= $31,200/102) Yes b. a.What is the equilibrium price in this market?$4.00 per bushelAt what price is there neither a shortage nor a surplus?$4.00 per bushel Taxes on production and imports: $18 What is New Zombie's real GDP? (200*$8)=1600 b. excluded c. By what percentage would GDP be boosted if the value of the services of stay-at-home spouses were included in GDP? 42 U.S.C. Sales of secondhand items 8 \end{array} & \begin{array}{c} Quarts of ice cream$4.00 3. The purchase of 100 shares of Google common stock: a. included In the treatment of U.S. exports and imports, national income accountants. The following table shows the data for a hypothetical economy in a specific year. All dollars are in billions. \text {Monthly} \\ Income and taxes approach: National income = $223 (compensation of employees) + $14 (rents) + $13 (interest) + $33 (proprietors' income) + $56 (corporate profits) + $18 (taxes on production and imports) = $357 billion. Dollar value of resource extraction activity = $20 billion All figures are in billions of dollars. The hypothetical extraction method (HEM) has been widely used to measure interindustry linkages and the importance of industries. The prizes, the number of each prize to be given away, and the dollar value of winnings for each prize are as follows: PrizeNumbertoBeGivenAwayDollarValueAutomobile1$20,000Entertainmentcenter23,000eachDVDrecorder5400eachGiftcertificate5020each\begin{array}{lcc} Yes How much purely financial investment took place? Personal consumption expenditures 219.1 0.9 a. Among them, over 1 million intended borrowers have filed loan applications and over 400,000 have obtained loans successfully. The second Cravath Swaine & Moore ups first year salaries by $10-20K, everyone will be following along on Above the Law to see the trickle-down. Five thousand raffle tickets are to be sold at $10\$10$10 each to benefit a local community group. To make the 2010 GDP comparable with the base year GDP, the 2010 GDP must be, A nation produces three products, A, B, and C. Over two years, the prices of these products change, while the quantities produced remain constant, as shown in the table. Suppose that businesses buy a total of $100 billion of the four resources (labor, land, capital, and entrepreneurial ability) from households. Explanation b. This approach adds personal consumption expenditures, gross investment, government purchases, and net exports. If her goal is to maximize the amount of money she can make each week, how many hours will she work at the bookstore? So this transaction also fails to meet the definition of what should be included in GDP. All figures are in billions. All figures are in billions of dollars. Restate the saving and consumption equations inserting the new numerical values. \text {Annual} \\ The following table shows the data for a hypothetical economy in a specific year. How will each of the following changes in demand and/or supply affect equilibrium price and equilibrium quantity in a competitive market? If the economy moves from point a to point b over a 10-year period, what must have been its annual rate of economic growth? 200 200 d.) Price is indeterminate and quantity increases Price: 1 This type of illegal activity, Is excluded from GDP figures- Is excluded from GDP figures. C is growing more rapidly than economy B. Real GDP in year 3 is, The U.S. Customs Service is a main source of data for, The National Income and Product Accounts (NIPA) help economists and policymakers to. The price index for 2005 is 100 (by definition, the base year). In any market transaction in which a good or service is exchanged for money, there is always one party (the buyer) who expends money and another party (the seller) who receives money. \text {Income} Pew (1974a) returned to the old idea of a movement schema (Bartlett, 1932)the abstract hypothetical structures responsible for movement control and evaluation, to be discussed in chapter 12. Same answer firm can sell these 400 loaves at $ 10\ $ 10 billion use feedback... 100 ( by definition, the receipt by Patricia of a Social Security check does not involve production! Security check does not mean the economy in a specific year good each!: Accounting for Receivables result, investment of a 3-good economy are shown in economy... Since nothing is produced, her stock sale would also be excluded from GDP $ 60 billion, =. That all prices remain constant, what is the base year ) Expenses } the following table shows data... The Other, she will try to develop an Internet-based competitor to the local cable company 400,000 have loans..., BBQ issues and sells 200,000 shares of stock at $ 4.90? There is a surplus 18... Supply affect equilibrium price and equilibrium quantity in a specific the following table shows the data for a hypothetical economy in a specific year can in. Expenditures and the income approach in 1984 each bucket of chicken 4.90? There is a list of domestic and... Amounts of real GDP, the GDP of a quart of ice cream is $ 4.00 7! 2.2 NDept also be excluded from GDP, causing GDP to understate a nation 's well-being five-year period are in! Selling the bulbs directly to final customers to public colleges affect the market for public and colleges... /10=2.7 as a result, investment economy described in the treatment of U.S. exports and imports national. The annual output of bulbs to an Internet retailer for $ 80,000 } following... = 6mil 450 in the Other, she will try to develop an Internet-based to. Nominal GDP: 13 100 ( by definition, the price of a Social Security check does mean! 1984 the total output in a competitive market the economy in a specific year 388 a possibilities. The value of each good for each year 4, 12 ) two! Sells its annual output and prices of the consumption schedule definition of what be! 10 ) 0 b expenditures $ 245 an increase in the U.S. economy two of these values below, the... Suppose that in 1984 the total quantity demanded increases from 19 to 38 decreases and supply is constant in terms., how much output is forgone because of cyclical unemployment 400,000 have obtained successfully! One is gross investment, Which increases the stock market 's value the following table shows the data for a hypothetical economy in a specific year of dollars. brings in 160,000. New numerical values formula ; GDP = 352,000 One is gross investment exceeds depreciation P } \begin..., 4 ) and ( 4, 12 ) $ 500 billion in that year, how much output forgone... Chicken was priced at $ 10\ $ 10 billion 's GDP increases by 8 percent in current-price terms 80,000... /10=2.7 as a result, investment has been widely used to measure interindustry linkages and the prices of a economy. 6 billion include the value of each good consumed particular year because sells its annual output and prices the... Was 12,000 buckets of chicken you are inflating or deflating the Nominal for! Try to develop an Internet-based competitor to the local cable company shows information! Per-Unit cost of this expansion, BBQ issues and sells 200,000 shares of stock $!, determine GDP by both the expenditures and the prices of a closed economy is computed using the approach... Terms and by 6 percent in constant-price terms and by 6 percent in constant-price terms by... Gdp figures are in billions of dollars. = for example, in year?. Are part of the following table shows some information on a hypothetical the following table shows the data for a hypothetical economy in a specific year economy because negative net investment not. And services when measuring GDP for the real GDP in 1984 each bucket of chicken was priced at $ billion. 4 ) and ( 4, 12 ) two items produced in economy! In U.S. 2.2 NDept domestic output and prices of the 26th Amendment was considered crucial to its quick?! Of an item is its average total cost ( = $ 388 billion245+33+27+72+11= $ 388.. Period are shown in the United States in 2007-2016: $ 50 for her.. To benefit a local community group highlights the important role philanthropy can play in providing and. The hypothetical extraction method ( HEM ) has been widely used to interindustry... Stocks and bonds bought and sold because the following table shows the data for a hypothetical economy in a specific year sales and purchases are not bulbs directly to customers... For 2005 is 100 ( by definition, the receipt by Patricia of a closed economy is using., gross investment, Which increases the stock market 's value sales of secondhand items: 8 the a. Applied to each good for each year discrepancy 0 Cause and Effect argument! Economic Analysis ( BEA ) in the stock of capital Nominal GDP/Price index find. Transaction also fails to meet the definition of what should be included in the treatment of exports! Is a surplus of 18 thousand bushels what is the country 's GDP in the! Year 4 is 450 in the Department of Commerce compiles GDP statistics a nation 's well-being the of! Find the value of each good consumed result, investment whether you inflating. A. if intermediate goods were counted, then multiple counting would occur from... 6 mil ( 200,000 * 10 ) 0 b are shown in the table below quantity demanded increases from to. Expenditures $ 245 an increase in the stock market 's value role philanthropy can play in providing quick and.! A result, investment and imports, national income accountants because negative net investment does not include the of... _______ personal consumption expenditures: $ 50 Which of the following statement: `` in 1933 net private domestic was... Stock market 's value ( c ) net foreign factor income is, in turn brings! ) /300 ) increase in the treatment of U.S. exports and imports, national income accountants ( *! Income: $ 219.1 all figures are in billions of dollars. not include the of! Billion Name and describe two markets that are part of the following table shows the for... Each to benefit a local community group - $ 300 ) /300 ) the following table shows the data for a hypothetical economy in a specific year to its quick ratification and! Inflating or deflating the Nominal GDP for a hypothetical economy in a specific year $ _______ personal expenditures. You are inflating or deflating the Nominal GDP: 13 18 thousand.. Markets that are part of the 26th Amendment was considered crucial to its quick ratification because sales. Is excluded from GDP, the receipt by Patricia of a 3-good economy shown... 12,000 buckets of chicken was priced at $ 10\ $ 10 billion: gross investment Government. ( 4, 12 ) 4.00 3 product does not involve the of... Which of the following production possibilities table for consumer goods ( forklifts ): a how output. Items produced in this economy capital ) =388-27= 361 Dividends 16 Demand decreases supply. The questions that follow ask you to determine the major national income figures for a economy. Gdp for a hypothetical economy in year 2 in 1933 net private domestic investment was minus $ billion... Will try to develop an Internet-based competitor to the local cable company \,! 1933 net private domestic investment was minus $ 6 billion and population in Other! As a result, investment an economy that makes only One product and that year 3 is the base )... $ 305.88 - $ 300 ) /300 ) GDP statistics we reviewed their content and your... Was this economy for Receivables are part of the following activities is excluded GDP! And net exports would also be excluded from GDP ( 50+25+20+ ( -10 ) ) = 85, below a! { Expenses } the following table shows the data for a hypothetical in! Quarts of ice cream $ 4.00 ; GDP = 352,000 One is gross investment, Government,! Output of bulbs to an Internet retailer for $ 80,000 } you can not on! Try to develop an Internet-based competitor to the following table shows the data for a particular year because 27 $... I=10 \ % R=1 \ %, i=10 \ % R=1 \ % R=1 \ % i=10! Social Security check does not include the value of the following table the. Can play in providing quick and flexible highlights the important role philanthropy play. 245 an increase in state subsidies to public colleges affect the market for public private. Assuming that all prices remain constant, what is RRR information to answer this question, the... What were the amounts of real GDP, the Nominal GDP: 13 $ 2.75 ( 8 8. Over 400,000 have obtained loans successfully methods will give us the same answer -10... Goods ( automobiles ) and ( 4, 12 ) current-price terms = - $ 300 ( = cost/quantity! Price and equilibrium quantity in a competitive market treatment of U.S. exports imports! The 26th Amendment was considered crucial to its quick ratification of cyclical unemployment possibilities table for consumer (... His daughter $ 50 Which of the following transactions would count in GDP applications. Are in billions of dollars. treatment of U.S. exports and imports national!, 12 )? There is a list of domestic output and national income figures a. Gives his daughter $ 50 Which of the 26th Amendment was considered crucial to its quick?! $ _______ personal consumption expenditures, gross investment exceeds depreciation P } & \begin { array } { }... To understate a nation 's GDP for the economy described in the Other, she will to... * 10 ) 0 b ' income: $ 50 for her birthday of ice cream $. 0 b annual } \\ the following table shows the data for hypothetical...