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The table below details the composition of an economy's GDP by spending category. Category Fixed business investment Durable goods Expenditures (billions of dollars) $3,450.00 $2,300.00
The table below details the composition of an economy's GDP by spending category. Category Fixed business investment Durable goods Expenditures (billions of dollars) $3,450.00 $2,300.00 Exports $800.00 Federal government purchases $1,550.00 New home construction $1,000.00 Imports $960.00 Change in inventories Nondurable goods $-250.00 $4,350.00 Services $8,950.00 State and local government purchases $2,500.00 Use the information in the table to calculate the following: a) Consumption: $ billion b) Investment: $ billion c) Government: $ billion d) Net exports: $ billion e) GDP: $ billion Part 2 (0.7 point) Think about the different components of GDP and how they change with the business cycle. Which component of consumption fluctuates the most? Choose one: A. new home construction B. services C. nondurable goods D. durable goods Part 3 (0.7 point) Consider the net exports component of GDP. Suppose exports increase by $100 billion and imports decrease by $100 billion. Net exports will
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