1,2 question solutions

government purchases nominal GDP 9. s up in the p adjusted GNP would you need to d chain-weighted index gross domestic product (GDP) nominal interest rate consumer price index (CPI) gross investment personal consumption Soppose you make a head of JUS that wil be to denominated in terms of & sonin constant dollar gross national income (GNI) expenditure deflator a real return? than expected dating the your! Whoa of the. )car consumption spending gross national product (PCE) core inflation (GNP) producer price index (PPI) Technical current dollar gross private domestic production function deflation investment real GDP 1. In the text, we calculated the cramp. m sell CAR depreciation human capital real interest rate using the prices of 2065. Calcican the duange in the same data but the prices of 2012. Yar zum durable goods inflation saving are used to calculate real GDP do affect the can very much. exchange rate intermediate goods trade deficit factor payments investment trade surplus 2. Show from national income a factors of production national income accounting transfer payments a. An increase in taxes (white sisters exports, government pure final goods and services identity unemployment rate An increase in disposable GDP deflator net domestic product (NDP) value added increase in saving government budget deficit net exports c. An increase in both con government expenditure net investment income. [For both parts b and c assume there are to prents to foreigners.] PROBLEMS The following is information from the to Conceptual DP What would happen to the measure of GDP if the government hired unemployed workers, Gross inve who had been receiving amount $TR in unemployment benefits, as government employees Net investment and now paid them the same amount to do nothing? Explain. amption In the national income accounts, what is the difference between Government purchases of Government budget sur a. A firm's buying an auto for an executive and the firm's paying the executive additional income to buy the automobile herself? What is Your hiring your spouse (who takes care of the house) rather than having him or her do a. NDP? the work without pay ? BP-5-A b. Net exports? c. Government taxes minus transfer c. Your deciding to buy an American car rather than a German car? 1. Household of demand for goods Use. Divate investment dema mand