Answer to Question #47515 in Macroeconomics for janice

Question

For the following items, follow the directions, write the correct answer in the blank, or circle the correct answer.

Having applied for a job at the Commerce Department’s Bureau of Economic Analysis, you are given the following hypothetical data to study before your interview. Figures are total value in billions of dollars.

Household spending on:
Services = $3,008
Nondurable goods = $1,776
Durable goods = $706
Business spending on plant and equipment = $815
Wear and tear on factory equipment = $200
Inventory changes = $9
New homes constructed = $397
Existing homes which were destroyed = $123
State and Local Government spending on:
Consumption = $540
Investment = $113
Federal Government spending on:
Consumption = $691
Investment = $132
Depreciation of government assets = $245
Transfer Payment = $2,936
Imports = $855
Exports = $961


A. What is the total value of consumption spending in this economy? _______________________

B. What is the total value of private investment spending in this economy? __________________

C. What is the total value of government purchases in this economy? ______________________

D. What is the total value of net exports in this economy? _______________________________

E. Using the expenditure approach, what is GDP for this economy? _________________________

______________________________________________________________________________.

F. Which entries in the table are not counted as part of the economy’s GDP? _________________
______________________________________________________________________________.



ECON 201 – Macroeconomics
Measuring National Income - GDP

Name _____________________________
Billions of dollars
Exports $367
Dividends 60
Consumption of fixed capital 307
Corporate profits 203
Compensation of employees 1,722
Government purchases 577
Rents 33
Taxes on production and imports 255
Gross private domestic investment 437
Corporate income taxes 88
Transfer payments 320
Interest 201
Proprietors’ income 132
Personal consumption expenditures 1,810
Imports 338
Social Security contributions 148
Undistributed corporate profits 55
Personal taxes 372
Net foreign factor income 0
Statistical discrepancy 0

Expenditure Approach
Item Amount

_______________________ $________________
_______________________ $________________
_______________________ $________________
_______________________ $________________


Gross Domestic Product = ________________________________



Net Domestic Product = _________________________________



National Income = _____________________________________



Personal Income= _____________________________________



Disposable Income = __________________________________

Answer 1

Household spending on:
Services = $3,008
Nondurable goods = $1,776
Durable goods = $706
Business spending on plant and equipment = $815
Wear and tear on factory equipment = $200
Inventory changes = $9
New homes constructed = $397
Existing homes which were destroyed = $123
State and Local Government spending on:
Consumption = $540
Investment = $113
Federal Government spending on:
Consumption = $691
Investment = $132
Depreciation of government assets = $245
Transfer Payment = $2,936
Imports = $855
Exports = $961