Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Statements Self Study Guide

Authors: Azhar Ul Haque Sario

1st Edition

979-8223894605

More Books

Students also viewed these Accounting questions