Introduction to Macroeconomics and Gross Domestic Product In the following situa
ID: 1212944 • Letter: I
Question
Introduction to Macroeconomics and Gross Domestic Product In the following situations, explain what is counted in this year's GDP: You bought a new Wii at GameStop last year and resold it on eBay this year. You purchase an Investing for Dummies book at Barnes k Noble. You purchase a historic home using the services of a real estate agent. You detail your ear so it is spotless inside and out. You purchase a new hard drive for your old laptop. Your physical therapist receives $300 for physical therapy but reports only $100. Apple buys 1,000 motherboards for use in making new computers. Toyota produces 10.000 new Camrys that remain unsold at the end of the year. To which component of GDP expenditure (C, I. G. or NX) does each of the following belong? Swiss chocolates imported from Europe. A drivers license you receive from the Department of Motor Vehicles. A candle you buy at a local store. A new home. Fill in the missing data in the following table. Consider an economy that only produces two goods: strawberries and cream. Use the table below to compute nominal GDP. real GDP. and the GDP deflator for each year. (Year 2010 is the base year, or in other words, use* 2010 prices to calculate real GDP.)Explanation / Answer
2.
a. Importing chocolate would be under NX, since NX = Export – Import.
b. Receiving license would be under G, since the government spends to prepare and for sending the license.
c. Buying a candle from a local store would be under C, because it comes under consumption category.
d. Purchasing a new home would be under I, since the purchaser invests money for that.
3.
GDP deflator = (Nominal GDP / Real GDP) × 100
2007: Real GDP = $100,000 ÷ 100% = $100,000
2008: Nominal GDP = $110,000 × 108% = $118,800
2009: GDP deflator = ($130,000 / $117,000) × 100 = 111.11%
2010: Real GDP = $150,000 ÷ 120% = $125,000
2011: Nominal GDP = $136,000 × 125% = $170,000
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.