1. Solving for GDP (12 points) Consumption Expenditures $67000 Wages $74000 Taxes on Production and Imports $16000 Government Purchases $33000 Statistical Discrepancy $ 7000 Imports $24000 Undistributed Corporate Profits $12000 Rent $53000 Proprietor's Income $19000 Exports $ 6000 Dividends $22000 Depreciation $17000 Interest $38000 Gross Private Domestic Investment $44000 Corporate Income Taxes $15000 Corporate Profits $49000 Net Foreign Factor Income $ 5000 Using the numbers above, complete EITHER parts a and b together OR part c alone. a. Solve for the aggregate expenditures value. b. As covered in class, the Federal Reserve has raised interest rates at its last nine meetings. Will this serve to increase or decrease the amount of personal consumption expenditures and gross private domestic investment in the economy? c. Solve for the national income.

1. According to the final estimate for fourth quarter 2022 GDP for the United States economy, did the nominal GDP or real GDP increase by a larger amount? Explain why this measure increased more than the other (2 points).

2. Between February 2022 and February 2023, did the CPI or core CPI experience a higher growth rate? Explain what would cause this measure to grow by a larger amount than the other measure. (2 points)