Go to the Economic Report of the President at www.gpoaccess.gov/e- op/. Consult the most recent Report's table

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Go to the Economic Report of the President at www.gpoaccess.gov/e- op/. Consult the most recent Report's table on "Gross Domestic Product." For the last year, with final rather than preliminary figures, find the values of gross domestic product personal consumption expenditures, and gross private domestic investment. Now find the value for fixed investment. If we assume that all inventory changes are unintended, fixed investment is the same thing as what we call intended investment. You will note that the column on the right titled "Change in Private Inventories" is equal to the difference between total and fixed investment (just as we have noted that total investment equals intended investment plus change in inventories). Calculate personal consumption expenditures (C) and intended investment () as percentages of gross domestic product (1). Calculate a simple measure of aggregate demand (C+ I) without government spending.

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Macroeconomics In Context

ISBN: 125384

2nd Edition

Authors: Neva Goodwin, Jonathan Harris, Julie A. Nelson, Brian Roach & Mariano Torras

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