consumption- $330,000 government purchases- $200,000 exports- $110,000 investment- $150,000 imports- $60,000 population- 50 people accordingly, use...

consumption- $330,000
government purchases- $200,000
exports- $110,000
investment- $150,000
imports- $60,000

population- 50 people

accordingly, use the expenditure approach, real GDP per capita is?
a. less than $10,000 per person
b. between $10,000 per person and $13,000 per person
c. between $13,000 per person and $16,000 per person
d. between $16,000 per person and $19,000 per person
e. greater than $19,000 per person

Solutions

Expert Solution

Answer :

In case of expenditure approach, GDP is the sum of Consumption(C), Investment(I), Government purchase(G) and net exports{NX, (Export - Imports)} . Therefore,

GDP = C+I+G+(NX),

GDP = 330,000+150,000+200,000+(110,000-60,000)

GDP = $680,000 + $50,000 = $730,000

GDP = $730,000

GDP per capita = GDP/Population

GDP per capita = $730,000/50 people

GDP per capita = $14,600/people

Rahul Sunny answered 1 year ago

Next > < Previous

Related Solutions

Consider a country with consumption expenditures, private investment expenditures, government purchases, imports, and exports as summarized...

Consider a country with consumption expenditures, private investment expenditures, government purchases, imports, and exports as summarized in the table below (each measured in millions of dollars): Consumption expenditures Investment expenditures Government purchases Imports Exports $797 $112 $235 $86 $104 For this country, “Gross Domestic Product (GDP) ” is equal to Question 20 options: 1) $18 million 2) $234 million 3) $1,334 million 4) $1,162 million

Components of GDP: Consumption, Investment, Government purchases, Net Exports What components of GDP (if any) would...

Components of GDP: Consumption, Investment, Government purchases, Net Exports What components of GDP (if any) would each of the following transactions affect? Explain. Copy and paste your answers below. 1. A family buys a new refrigerator. 2. Aunt Jane buys a new house. 3. Ford sells a mustang from its inventory. 4. You buy a pizza. 5. California repaves Highway 101. 6. Your parents buy a French bottle of wine. 7. Honda expands its factory in Marysville, Ohio. 8. I...

Category Billions of dollars Consumption 400 Investment 150 Government spending 80 Exports 210 Imports 60 Foreign...

Category Billions of dollars Consumption 400 Investment 150 Government spending 80 Exports 210 Imports 60 Foreign income payments to domestic factors 20 Domestic income payments to foreign factors 10 Net unilateral transfers 5 [2 points each] Using the hypothetical U.S. national income and product accounts data from the above table, answer the following: Calculate GNE. Calculate the trade balance. Calculate GDP. Calculate net factor income from abroad. Calculate GNI. Calculate the value of current account. Calculate GNDI. Calculate national savings...

Category Billions of dollars Consumption 400 Investment 150 Government spending 80 Exports 210 Imports 60 Foreign...

Category Billions of dollars Consumption 400 Investment 150 Government spending 80 Exports 210 Imports 60 Foreign income payments to domestic factors 20 Domestic income payments to foreign factors 10 Net unilateral transfers 5 Using the hypothetical U.S. national income and product accounts data from the above table, answer the following: (Please show all calculations and formulas used) Calculate GNE. Calculate the trade balance. Calculate GDP. Calculate net factor income from abroad. Calculate GNI. Calculate the value of current account. Calculate...

Aggregate expenditure equals: A) Consumption + Investment + Government purchases + Transfers B) Consumption + Investment...

Aggregate expenditure equals: A) Consumption + Investment + Government purchases + Transfers B) Consumption + Investment + Government purchases + Net exports C) Consumption + Investment + Federal government purchases + Exports D) Consumption + Government purchases – Net exports As the real interest rate rises: I. consumption rises. II. net exports fall. III. investment rises. A) II only B) I only C) I and III D) III only When the real interest rate rises in the United States, there...

explain how the government can cause consumption, government spending, investment, and exports to increase and thus...

explain how the government can cause consumption, government spending, investment, and exports to increase and thus stimulate GDP and improve the economy.

Suppose that consumption is 200, Government spending is 100, Investment is 100. Moreover, suppose that exports...

Suppose that consumption is 200, Government spending is 100, Investment is 100. Moreover, suppose that exports are equal to 50 while imports are 150. (a) What is the value of the current account? Does this country have a current account deÖcit or surplus? (b) What is the GNP of this economy? (c) What is the value of national saving? (d) Suppose that taxes are equal to 50. Calculate the private saving and the government budget deÖcit

Red Hawk Woods spent $400,000 in consumption, $200,000 in gross investment, $100,000 in government goods and...

Red Hawk Woods spent $400,000 in consumption, $200,000 in gross investment, $100,000 in government goods and services, $100,000 in exports, and $250,000 in imports What is the GDP of Red Hawk Woods? If the population in Red Hawk Woods is 3,000, what is GDP per capita? Good Price 2011 Quantity 2011 Price 2012 Quantity 2012 Shampoo $8 1000 $10 1500 Conditioner $7 5000 $8 6000 Use the table above for Hairy Island to answer the following questions. What was nominal...

Using the Spending Approach, determine whether each of the following is Consumption, Investment, Government Purchases, Net...

Using the Spending Approach, determine whether each of the following is Consumption, Investment, Government Purchases, Net Exports, or not included in GDP, and briefly explain why. (a) A yoga studio purchases new yoga mats and straps. (b) An individual purchases a new yoga mat and straps for their home practice. (c) Someone receives a stimulus check from the government in the mail during COVID-19. (d) A public high school purchases new textbooks for its students. (e) A campus bookstore increases...

An economy has full-employment output of 6000. Government purchases are 1680. Desired consumption and desired investment...

An economy has full-employment output of 6000. Government purchases are 1680. Desired consumption and desired investment is given by ?? ? Cd= 3000-1500?+0.2? ?? ? Id= 500-3250? where Y is output and r is the real interest rate. a. (5 Points)What is the real interest rate that clears the goods market? Assume that output equals full employment output. b. (3 Points) Compute the amount of saving, investment and consumption in equilibrium. c. (4 Points) What would happen to the equilibrium...

Subjects