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Suppose that data below corresponds to the small nation of Cruzville with a population of 189 people. Of the 189 residents 57 are under 16

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Suppose that data below corresponds to the small nation of Cruzville with a population of 189 people. Of the 189 residents 57 are under 16 years of age, and 11 are institutionalized adults. People in the last two categories are not considered to be in the labor force. Of the remaining 121 residents, 16 are without jobs and have given up searching for a job, 6 do not have a job, but are actively seeking work, 20 work part time, and the rest work full time. Over the years, the natural rate of unemployment has been found to be 7%. In 2014, the consumer price index (CPI) was 112, and in 2015 the CPI was 130. Table 1 (Latest year data for National Income Accounting for Cruzville, amounts are given in $ U.S.). Population of 189 people Income Taxes $28,000 Compensation of Employees $2,280,000 Corporate Profits $700,000 Change in Inventories $500,000 Social Security contributions $3,500 Imports $50,500 Consumption of Nondurable Goods $1,200,000 Rental Income $200,000 Fixed Residential Investment $600,000 Government Purchases of Goods and Services $1,600,000 Proprietors' Income $550,000 Consumption of Durable Goods $750,000 Consumption of Services $850,000 Capital Consumption Allowance $550,000 Exports $45,000 Fixed Nonresidential Investment $400,000 CALCULATING GDP 1. According to the information provided in the GDP background information handout, a) what are the 4 categories of the expenditures approach? b) how are these categories used to calculate GDP? (8 points) 2. According to table 2 in the GDP background information handout, what are the subcategories of Personal Consumption Expenditures? (8 points) 3. According to table 2 in the GDP background information handout handout, what are the subcategories of Gross Private Domestic Investment? (8 points)

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