SCENARIO: You are an intern at the Bureau of Economic Analysis. Your supervisor is asking you to review the data in tables 1 and 2, and produce a report that answers the questions in the following slide. (Table 1) National Income Accounting 1st year data (Table 2) National Income Accounting 2nd year data Consumption of Durable Goods $1,250,000 Consumption of Durable Goods $1,437,500 Consumption of Nondurable Goods $889,000 Consumption of Nondurable Goods $1,022,350 Compensation of Employees $865,000 Compensation of Employees $994,750 Consumption of Services $2,350,000 Consumption of Services $2,702,500 Fixed Residential Investment $645,000 Fixed Residential Investment $741,750 Corporate Profits $1,150,000 Corporate Profits $1,322,500 Fixed Nonresidential Investment $730,000 Fixed Nonresidential Investment $839,500 Consumption of Fixed Capital $90,400 Consumption of Fixed Capital $103,960 Change in Inventories $125,000 Change in Inventories $143,750 Government Purchases of Goods and Services $940,000 Government Purchases of Goods and Services $987,000 Exports $250,000 Exports $262,500 Imports $360,000 Imports $378,000 SCENARIO QUESTIONS 1. Calculate GDP using the expenditures approach for year 1 and year 2. Explain your rationale with numbers. In other words, you must show the following; = What is Personal Consumption Expenditures in year 1 and 2 * What is Gross Private Domestic Investment in year 1 and 2 = What is Government Purchases of Goods and Services in year 1 and year 2 What is Net Exports in year 1 and year 2 = What is GDP in year 1 and year 2 In percentage terms, which of the 4 categories of spending changed more from year 1 to year 2. In other words, looking at the results from year 2, which of the categories experienced the highest percentage change. Explain your rationale with numbers. What was the percentage change in GDP? Explain your rationale with numbers. Use 2 decimal points. In your own words, explain why GDP is such an important metric that is used to understand the economic performance of nations. How does looking at GDP per capita help when comparing economic performance of different nations