Question

1. If exports are $500, GDP is $8000, government purchases are $1200, imports are $700, and...

1. If exports are $500, GDP is $8000, government purchases are $1200, imports are $700, and investment is $800, then consumption is equal to?

2. The country of Batavia produces only chocolates and watches. Below is a table with recent information on Batavia production and prices. The base year is 2008.

Prices and Quantities

Year

Price of A Box of Chocolates

Boxes of Chocolates

Price of Watches

Quantity of
Watches

2008

$4

100

$50

10

2009

$5

90

$50

15

2010

$5

100

$60

15

2011

$6

80

$65

12

Compute Real GDP for 2011.

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Answer : 1) GDP = Consumption + Investment + Government spending + (Export - Import)

By putting all given values in above formula we get,

8000 = Consumption + 800 + 1200 + (500 - 700)

=> 8000 = Consumption + 1800

=> Consumption = 8000 - 1800

=> Consumption = 6200

Therefore, here the Consumption is $6,200.

2) Real GDP = Base year price level * Current year quantity level.

Here the base year is 2008.

Real GDP of 2011 = (4 * 80) + (50 * 12) = 320 + 600

=> Real GDP of 2011 = 920

Therefore, here in 2011 the real GDP is $920.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Recall the method of calculating real GDP detailed in the chapter. As you may already have​...
Recall the method of calculating real GDP detailed in the chapter. As you may already have​ noticed, this method has a​ problem: in calculating aggregate​ output, this method weights the output of the various goods and services by their relative prices in the base year. ​Say, for​ example, a textbook costs​ $100 in the base​ year, and a laptop costs​ $2,000. This means that the laptop would have 20 times the weight of a book in calculating aggregate output. But...
3 questions question 1 GDP per capita is: Multiple Choice highly correlated with quality of life....
3 questions question 1 GDP per capita is: Multiple Choice highly correlated with quality of life. loosely correlated with quality of life. perfectly correlated with quality of life. negatively correlated with quality of life. question 2 Suppose you are given the following annual deflator information for the US (https://fred.stlouisfed.org). Using the information from the table we can conclude that the year with the lowest price level was: Year Deflator 2008 99 2009 100 2010 101 2011 103 2012 105 2013...
Multiple questions: If Government spending decreases by $100, GDP will    a) increase by $500   b)...
Multiple questions: If Government spending decreases by $100, GDP will    a) increase by $500   b) fall by $500   c) fall by $400    d) increase by $900   e) fall by $900 If taxes increase by $100, GDP will    a) increase by $400   b) decrease by $400   c) rise by $500    d) fall by $600       e) not change Suppose that Congress reduced Government spending at the same time that the price of imported oil increased. This would...
1. CPI inflation overstates increases in the cost of living A. but its impact on government...
1. CPI inflation overstates increases in the cost of living A. but its impact on government budget is insignificant as both taxes and expenditures are tied to the index. B. because the index is subject to substitution bias but not quality bias. C. because the index is subject to quality bias but not substitution bias. D. by​ 1% per​ year, or perhaps even higher. 2. The CPI is calculated as A. The current cost of a fixed market basket of...
America and Country X have the same levels of consumption, investment, and government purchases, but Country...
America and Country X have the same levels of consumption, investment, and government purchases, but Country X sells twice as many exports as buys twice as many imports as America. Which country must have a larger GDP? America Country X The GDP of America must equal the GDP of country B The answer depends on whether America has positive or negative net exports A multiple-choice question with one possible answer.(Required) On average, Japanese workers have lower hourly productivity and work...
1. Country A with a civilian non-institutionalized population of 237 mil (all over age 16), has...
1. Country A with a civilian non-institutionalized population of 237 mil (all over age 16), has 156 mil employed and 47 mil unemployed persons, of the unemployed 5 mil is frictional and 8 mil structural. a) What is the size of the labor force? ………………………………………… b) What is the actual unemployment rate? ……………………………………. c) What is the Cyclical unemployment? ................................................. d) What is the Natural Rate of Unemployment (NRU)? ……………………… e) Is this economy in a recession or a boom?...
If autonomous consumption is $1000, the MPC = 0.75, net taxes = $500, investment spending =...
If autonomous consumption is $1000, the MPC = 0.75, net taxes = $500, investment spending = $800, and govt purchases = $500, and NX = $0, what is equilibrium GDP? Question 1 options: $1,800 $1,925 $2,566.70 $7,200 $7,700 Question 2 (1 point) The focus of the short-run macro model is on the role of Question 2 options: spending in explaining economic fluctuations labor in explaining economic fluctuations financial markets in explaining economic fluctuations output in explaining economic fluctuations resources in...
Use the information in the following table to answer questions 1 through 4: Exports of goods...
Use the information in the following table to answer questions 1 through 4: Exports of goods & services: $1000 Imports of goods & services: $1200 Net change in assets owned abroad: $100 Net change in foreign owned assets at home: $360 Unilateral transfers received: $130 Unilateral transfers paid: $200 Investment income paid to foreigners: $380 Investment income received from foreigners: $400 Balance on the capital account: $0 Statistical Discrepancies: $0 1. The balance on the current account is _________. A)...
1. Over the past two centuries, the benchmark U.S. real interest rate has averaged about a....
1. Over the past two centuries, the benchmark U.S. real interest rate has averaged about a. 3% b. 10% c. 7% d. 15% e. 1% f. 0% 2. A basket of goods in the base year cost $1200. This year, the basket cost $1600. What is this year's index number? a. 33.3 b. 75 c. 133.3 d. 75 percent e. 133 percent 3. In 1994, an index stood at 350. The index had a base year of 1982-84 =100. In...
1. Consider an economy that produces and consumes bread and automobiles. In the table below are...
1. Consider an economy that produces and consumes bread and automobiles. In the table below are data for two different years: Year 2010 Year 2025 Price of an automobile $50,000 $60,000 Price of a loaf of bread $10 $20 Number of automobiles produced 100 120 Number of loaves of bread produced 500,000 400,000 Using the year 2010 as the base year, compute the following: nominal GDP, implicit price deflator and the CPI. 2. Assume that GDP (Y) is 5,000. Consumption...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT