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) $3,600.00

image text in transcribed

The table below details the composition of an economy's GDP by spending category. Category Fixed business investment Durable goods Expenditures (billions of dollars) $3,600.00 $2,400.00 Exports $700.00 Federal government purchases $1,600.00 New home construction $1,000.00 Imports Change in inventories Nondurable goods Services $840.00 $-300.00 $4,300.00 $8,450.00 State and local government purchases $2,550.00 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 (1 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 durable goods B. nondurable goods C. services O D. new home construction See Hint

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

College Accounting

Authors: Tracie Nobles, Cathy Scott, Douglas McQuaig, Patricia Bille

11th edition

978-1111528300, 1111528128, 1111528306, 978-1111528126

More Books

Students also viewed these Accounting questions