GDP = C + I + G + Xn Use the information below to fill in...

GDP = C + I + G + X_n

Use the information below to fill in the blanks in the table. Add only the things that are included in GDP to get the nominal GDP. Omit things not counted in GDP. (I filled in a few answers just to help you get started.)

Remember: Real GDP = (Nominal GDP/implicit price deflator) * 100

(All dollar amounts in billions)

economic activity	Does this count in GDP? If so, where? C, I, G, or X_n?	2010	2012	2014
Government purchases of products	G	360	380	410
Payroll of government employees		210	220	235
New home construction		40	40	46
U.S. purchases of imports		40	45	55
U.S. sales of exports	Xn	40	40	40
Estimated value of underground economy		110	112	115
Household consumption expenditures	C	720	780	830
Changes in inventory		-30	0	35
Social Security earnings		13	14	15
Welfare payments		8	9	9
Business purchases of capital equipment		75	80	90
Implicit price deflator		93.6	100.0	105.0
TOTAL NOMINAL GDP		1,375
TOTAL REAL GDP (in 2012 dollars)

Expert Solution

Ans: Table

economic activity	Does this count in GDP? If so, where? C, I, G, or X_n?	2010	2012	2014
Government purchases of products	G	360	380	410
Payroll of government employees	G (because it is paid by govt)	210	220	235
New home construction	I (counted as part of Residential Investment)	40	40	46
U.S. purchases of imports	Xn (included as imports and subtracted from exports to get the Net exports)	40	45	55
U.S. sales of exports	Xn	40	40	40
Estimated value of underground economy	No (Illegal Black Economy does not form PART OF GDP)	110	112	115
Household consumption expenditures	C	720	780	830
Changes in inventory	I (Part of Capital Formation)	-30	0	35
Social Security earnings	NO (Because these are transfer payments an they are not a part of GDP)	13	14	15
Welfare payments	NO (Because these are transfer payments an they are not a part of GDP)	8	9	9
Business purchases of capital equipment	I (Part of capital formation)	75	80	90
Implicit price deflator		93.6	100.0	105.0
TOTAL NOMINAL GDP		1,375	1,495	1,631
TOTAL REAL GDP (in 2012 dollars)		1,469.02	1,495	1,553.33

Rahul Sunny answered 2 years ago

(1) Please find the percentages for C, I, G, and Xn for theUnited states for...

(1) Please find the percentages for C, I, G, and Xn for the United states for 2019 In 2019, U.S. GDP was 70% personal consumption, 18% business investment, 17% government spending, and negative 5% net exports.(2) Please draw Aggregate Demand, Short Run Aggregate Supply, and Long Run Aggregate Supply as if an economy is in both short run and long run equilibrium.(3) Suppose the United States government decides to add solar panels to federal government buildings. Show how this will...

Using the below information fill in the answers to parts (a), (b) and (c) for a...

Using the below information fill in the answers to parts (a), (b) and (c) for a change in accounting principle Partial Income Statement using Completed- contract-method for its long-term construction contracts: 2015 2016 2017 Income before taxes 400,000 160,000 190,000 Income tax expense (40%) 160,000 64,000 76,000 Net Income 240,000 96,000 114,000 Partial Income Statement using Cost-to-Cost-method for its long-term construction contracts: 2015 2016 2017 Income before taxes 600,000 180,000 200,000 Income tax expense (40%) 240,000 72,000 80,000 Net Income...

Explain the significance of the equation GDP = C + I + G + NX. What...

Explain the significance of the equation GDP = C + I + G + NX. What does it not include and why can that be an issue?

Describe the components of GDP = C + I + G + X - IM. Tell...

Describe the components of GDP = C + I + G + X - IM. Tell who or which sector is the actor and what they buy, by category and by specific example. Which sector is largest and most important in the U.S. American economy?

1. GDP (Y) = C + I + G Consumption = 10 + .75Y Investment =...

1. GDP (Y) = C + I + G Consumption = 10 + .75Y Investment = 20 + .15Y Government = 35 The size of the expenditure multiplier for this hypothetical economy is a. 4. b. 10. c. 2. d. none of the other answers are correct. 2. Find the level of equilibrium income, given the following values for the economy: Consumption = 10 + .75Y Investment = 20 + .15Y Autonomous Taxes = 20 Government = 30 a. 180...

Using the Expenditure Model (GDP = C + G + I + NX), draw a graph...

Using the Expenditure Model (GDP = C + G + I + NX), draw a graph that depicts Demand-Pull inflation.

Let Y = GDP (national income). In equilibrium, Y = C + I + G + X...

Let Y = GDP (national income). In equilibrium, Y = C + I + G + X - M, with C + I + G represented on a domestic expenditure basis. If Y = C + I + G + X - M, then Y - (C + I + G) = X - M. If X - M > 0, then Y > C + I + G. How, then, is balance of payments equilibrium achieved?

Please fill in the blanks (values of A, B, C, D, E, F, G, H, I...

Please fill in the blanks (values of A, B, C, D, E, F, G, H, I , J) for the following financial statements. The firm’s tax rate is 35.3%. Income Statement for Fiscal Year 2015 Sales 2,000 Cost of goods sold 1,500 Gross margin 500 Selling and general expenses 300 Operating income 200 Interest income 5 205 Interest expense 21 Restructuring charges 14 Income before tax 170 Income tax 60 Net income J Balance Sheet, Year 2014 and Year 2015...

3. Explain the four main components of GDP (i.e., C+I+G+(X-M)).

3. Explain the four main components of GDP (i.e., C+I+G+(X-M)). 4. What is the difference between nominal and real GDP? 5. What is the consumer price index (CPI)?

As we know, GDP for country can be determined by GDP = C + I +...

As we know, GDP for country can be determined by GDP = C + I + G + NetExports.

Question