Year 1998 GDP Personal Consumption Expenditures 8747 1999 Gross Private Domestic Investment Net Exports 5879.5 1,509.10 -159.9 6,282.50 1,625.7 -260.5 Government Consumptions & Gross Investment 1,620.80 1. Fill in the blank. 2. Atoll is a small island nation. Its total population is 2,000, and it has 1,186 wage earners who earn an average of $540 per year. Each wage earner spends $250 dollars per year buying local goods and services and $ 50.00 buying imports. The island exports a total of $6,250 worth of goods. The government tax rate is 5.19% and all government money is spent on building infrastructure and supporting schools. There is only one industry (sugar cane production) on the island and it employs every wage earner. The industry spends $3,000 each year on new equipment. A. Calculate the GDP for this small island use the expenditure approach. B. What is GDP per capita? / 3. Fill in the blanks as indicated to analyze the response to each change. In the first two columns use S or M for "shift" or "movement along". In the last two columns use + or -. Fill in the Blank Aggregate Demand Curve Aggregate Supply Curve An decrease in business investment spending An increase in the price of many basic commodities used as inputs in the production of final goods and services Widgets Gizmos Thingamajigs Year Price Quantit y Price Quantity Pric e Quantity 2006 $ 655 4 $650 3 $77 5 5 2007 $710 3 $585 5 $92 0 7 4. Calculate the nominal GDP. a. What is the nominal GDP in 2006? b. What is the nominal GDP in 2007? /