Using the expenditure approach calculate GDP from the following data:
- personal consumption expenditures $1556
- net exports $132
- gross private domestic investment $162
- government purchases of goods and services $450
- personal income $1700
- corporate profits $600

Solution Summary

The solution explains the concept of GDP and uses the GDP formula to calculate the GDP. The solution is very detailed. Any student can easily go through the explanation and understand what is in the response. It is ideal for students who want to learn the concepts so that they can apply to similar problems later on. The solution also presents two approaches of calculating GDP and arrives at the same answer using any of the approaches.

Problem 1
In what specific ways (if any) does a college education increase a worker's productivity? Take some special care with this problem.
Problem 2
In what way is Per Capita GDP a better measure of economic well being than GDP? How does this relate to economic problems in the undeveloped world?
Problem 3
Is limitles

If GDP is increasing by 3% per year how long will it take GDP to double? Given the same conditions how long will it take Per Capita GDP to double if the population grows at 2%?

Problem:
GDP differs from GNP because:
GDP = GNP - net factor payments from abroad.
GNP = GDP - net factor payments from abroad.
GDP = GNP - capital consumption allowances.
GNP = GDP - capital consumption allowance

If every time real GDP exceeds potential GDP, contractionary policy is used and whenever real GDP is less than potential GDP, expansionary policy is ised. GDP equal potential GDP and then aggregate demand increase. As a consequence of this policy action taken, what would the results be...
Not sure if expansionary policy will

What is the difference between GDP and GNP? Which is a more accurate measure of local income and why?
I understand the difference between GDP and GNP however, I am unsure on how to answer the second question as to which one is more accurate with regards to local income and why.
Thank you for your help!

Assuming that Country A has a population of 500,000 and only produce 1 good: cars. Country A produces 100,000 cars per year. The people in Country A purchase 90,000 cars, but there are not enough cars to fulfill all the demand. They decide to import 50,000 more. The government buys 25,000 cars for its police force, and 10,00

Problem caculate the total change in a year's GDP:
General Electric uses $10 million worth of steel,glass, and plastic to produce dishwashers. Wages and salaries in the dishwasher division are $40 million: the divisions only other expense is $15 million in interest that it pays on its bonds. The divsion revenue for the year i

Given a table of data comprising real GDP and its components over a number of years, compute compound annual percentage changes in real GDP (economic growth) and compute the shares in real GDP. Evaluate changes in economic growth.
See the attached file. Complete the table and answer the following questions:
What's the differ

If Real GDP is less than Natural Real GDP, the economy is in____________.
a. an inflationary gap
b. a recessionary gap
c. an unemployment gap
d. a real gap

Calculate the real GDP in each year, assuming that the nominal GDP was $559 billion in the base year, $577 billion in year one, and $605 billion in year two; and that the price index rose from 100 to 104.5 in the first year, and up to 108.3 in the second year. If the price index 20 years before the base year was 41.2, and the no