Question

In: Economics

Consider the following hypothetical data for U.S economy in 2020 (all amounts are in trillions of...

Consider the following hypothetical data for U.S economy in 2020 (all amounts are in trillions of dollars)

Statistical Discrepancy	4
Depreciations	3
Exports	4
Gross private domestic investment	7
imports	6
Government purchases	6
Personal consumption expenditure	9
net foreign factor income	5

Based on the above data

1. What is the gross Domestic product ?

2. What is the new cosmetic Product?

3/ What is the national income?

Expert Solution

1.

Gross Domestic Product = Personal consumption expenditure + Government purchases + Gross private domestic investment + Exports - imports

= 9 + 6 + 7 + 4 - 6

= 20 trillion dollars

2.

Net Domestic Product = Gross Domestic Product - Depreciation

=20 -3

=17 trillion-dollar

3.

Gross Domestic Income = Gross Domestic Product - Statistical Discrepancy

=20-4

=16 trillion-dollar

National Domestic Income = Gross Domestic Income - Depreciation

=16-3

=13 trillion-dollar

Hence,

National Income = National Domestic Income + Net factor income

= 13 + 5

=18 trillion-dollar

Rahul Sunny answered 2 years ago

Consider the following hypothetical data for the U.S. economy in 2020 (all amounts are in trillions...

Consider the following hypothetical data for the U.S. economy in 2020 (all amounts are in trillions of dollars): Category Value Consumption $12.4 Non-income-related taxes net of subsidies 0.9 Depreciation 1.2 Government spending 2.7 Imports 2.5 Gross private domestic investment 3.1 Exports 2.6 a. Based on the data above: (Enter your responses rounded to one decimal place.) Calculate GDP. $ nothing trillion. Calculate NDP LOADING.... $ nothing trillion. Calculate NI LOADING.... $ nothing trillion.

Consider the following hypothetical data for the U.S. economy in 2020 (in trillions of dollars), and...

Consider the following hypothetical data for the U.S. economy in 2020 (in trillions of dollars), and assume that there are no statistical discrepancies, zero net incomes earned abroad, and zero taxes on production and imports of net subsidies. Category Value Category Value Corporate profits before taxes deducted $2.7 Exports $1.5 Proprietorial income 0.8 Net transfers and interest earnings 2.2 Rent 0.8 Nonincome expense items 1.8 Interest 0.9 Imports 1.8 Wages 8.4 Corporate taxes 0.6 Depreciation 1.2 Social security contributions 2.1...

Answer the following questions: Consider the data below for a hypothetical economy. All figures are in...

Answer the following questions: Consider the data below for a hypothetical economy. All figures are in billions of dollars. Real Domestic Aggregate Aggregate Output Expenditures (C + Ig), Expenditures (C + Ig + Xn), (GDP = DI) Private, Closed Economy Exports, X Imports, M Private, Open Economy ($ Billions) ($ Billions) ($ Billions) ($ Billions) ($ Billions) 200 245 30 15 ________ 250 ...

Consider the following data for a hypothetical economy. All payments to labor are two third of...

Consider the following data for a hypothetical economy. All payments to labor are two third of total GDP. From 1960 to 2019, the capital-output ratio has remained constant at 3. All values are continuously compounded, annualized growth rates, in percent. Growth in Capital per worker (1960–2019): 2 Growth in Total Output (1960-2019): 6 Discuss whether this economy is on a Balanced Growth Path. Compute your best estimate for the growth rate of the labor force. Describe one policy that can...

Consider a hypothetical economy characterized by the following equations (all variables as defined in class). Consumption:...

Consider a hypothetical economy characterized by the following equations (all variables as defined in class). Consumption: C = 700 + 0.95Y Investment: I=500− 30i Government spending: G=50 Money demand: L(i,Y )=0.75Y − 30i Money supply: Ms/P=400 (a) What is the equation of the IS curve? (b) What is the equation for the LM curve? (c) Solve for the equilibrium values of income (Y) and interest rates (i). (d) Assume that the government engages in expansionary fiscal policy by increasing expenditure...

2. Consider the following data for a hypothetical economy that produces two goods, milk and honey....

2. Consider the following data for a hypothetical economy that produces two goods, milk and honey. Quantity Produced Prices Milk (litres) Honey (kg) Milk ($/litre) Honey ($/kg) Year 1 110 45 2 6 Year 2 125 40 3 7 Compute nominal GDP for each year in this economy. Using year 1 as the base year, compute real GDP for each year. What is the percentage change in real GDP from year 1 to year 2? Using year 1 as the...

Consider a hypothetical open economy. The following table presents data on the relationship between various real...

Consider a hypothetical open economy. The following table presents data on the relationship between various real interest rates and national saving, domestic investment, and net capital outflow in this economy, where the currency is the U.S. dollar. Assume that the economy is currently experiencing a balanced government budget.Real Interest RateNational SavingDomestic InvestmentNet Capital Outflow(Percent)(Billions of dollars)(Billions of dollars)(Billions of dollars)76030-1065540-555050044560534070102358015Given the information in the preceding table, use the blue points (circle symbol) to plot the demand for loanable funds. Next,...

The Fed, the U.S. central bank, has reportedly injected trillions of dollars into the economy since...

The Fed, the U.S. central bank, has reportedly injected trillions of dollars into the economy since 2009. Can you tell where those dollars are? If not, why not? How can you use what you’ve learned from this course to explain the impact of the Fed’s actions? K

Use the table to find GDP, NDP, NI. (All amounts in trillions of dollars.) Consumption 11.0...

Use the table to find GDP, NDP, NI. (All amounts in trillions of dollars.) Consumption 11.0 Indirect business taxes .8 Depreciation 1.3 Government spending 2.8 Imports 2.7 Gross private domestic investment 3.0 Exports 2.5 GDP = Blank 1, NDP = Blank 2, NI = Blank 3 Write the number only, one decimal place; e.g. 10.0

Consider a bond with the following features and a hypothetical settlement date of 20 November 2020....

Consider a bond with the following features and a hypothetical settlement date of 20 November 2020. Annual Coupon 6% Coupon Payment Frequency Semiannual Interest Payment Dates 30 December and 30 June Maturity Date 30 December 2021 Day-Count Convention 30/360 Annual Yield-to-Maturity 7% What is the bond's approximate modified duration assuming a 10 bp change in its annual yield-to-maturity? Remember to annualize your answer and round your answer to three decimal places.