Question

In: Economics

The components of GDP in the accompanying table were produced by the Bureau of Economic Analysis....

The components of GDP in the accompanying table were produced by the Bureau of Economic Analysis. Category Components of GDP in 2013 (billions of dollars)

Consumer spending

Durable goods $1,263.0

Nondurable goods 2,622.9

Services 7,615.7

Private investment spending

Fixed investment spending 2,564.0

Nonresidential 2,047.1

Structures 456.4

Equipment and intellectual property products 1,590.7

Residential 516.9

Change in private inventories 106.1

Net exports

Exports 2,259.9

Imports 2,757.2

Government purchases of goods and services and investment spending

Federal 1,245.9

National defense 770.7

Nondefense 475.1

State and local 1,879.6

1) Calculate 2013 consumer spending.

2) Calculate 2013 private investment spending.

3) Calculate 2013 net exports.

4) Calculate 2013 government purchases of goods and services and government investment spending.

5) Calculate 2013 gross domestic product.

6) Calculate 2013 consumer spending on services as a percentage of total consumer spending.

7) Calculate 2013 exports as a percentage of imports.

8) Calculate 2013 government purchases on national defense as a percentage of federal government purchases of goods and services.

Solutions

Expert Solution

(1)

Consumer spending = durable goods + non durable goods + services

= 1263.0 + 2622.9 + 7615.7

= 11,501.6

(2)

Private investment spending = fixed investment spending + nonresidential + structures + equipment and intellectual property product + residential + change in private inventory

= 2564.0 + 2047.1 + 456.4 + 1590.7 + 516.9 + 106.1

= 7,281.2

(3)

Net exports = export - import

= 2259.9 - 2757.2

= - 497.3

(4)

Government purchase of goods and services and investment spending = federal + non defense + national defense + State and local

= 1245.9 + 475.1 + 770.7 + 1879.6

= 4,371.3

(5)

GDP = C + I + G + NX

= 11501.6 + 7281.2 + 4371.3 - 497.3

= 22,656.8

(6)

Consumer spending on services as a percentage of total consumer spending = 7615.7 / 11501.6

= 0.6621

= 66.21%

(7)

Exports / Imports = 2259.9 / 2757.2

= 0.8196

= 81.96%

(8)

Government purchases on national defense as a percentage of federal government purchases of goods and services = 770.7 / 1245.9

= 0.6186

= 61.86%


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