Billions of Dollars Gross private domestic investment $2,300 Depreciation $1,987 Exports $3,120 Imports $200 Government purchases of goods and services $4,521 Personal consumption expenditures $6,300 The bicycle was sold to E.Z. Which set of years most clearly demonstrates an expansionary phase of the business cycle? The doubling time is approximately equal to the number 70 divided by the percentage rate of growth. Jars of Peanut Butter Dollar value of resource extraction activity = $20 billion Because investment and capital goods are paid for with savings, higher savings rates reflect a decision to consume fewer goods in the present and more goods in the future. Use the companies financial information to answer the following questions. . Measuring Domestic Output and Nat, Fundamentals of Engineering Economic Analysis, David Besanko, Mark Shanley, Scott Schaefer, Statistical Techniques in Business and Economics, Douglas A. Lind, Samuel A. Wathen, William G. Marchal. But that transfer of purchasing power does not by itself lead to anything being produced. All figures are in billions. b. e. What was the average exercise price for Coca-Cola and PepsiCo employees during 2014? a. the market or money value of all final goods and services produced by the economy in a given year, whereas real GDP is adjusted for inflation. Instructions Which of the following is not economic investment? e. A monthly allowance a college student receives from home: The following table shows the data for a hypothetical economy in a specific year. (Hint: How many times would Panama's 2017 real GDP per person have to double to reach the United States' 2017 real GDP per person? Gross domestic product does not include the value of the stocks and bonds bought and sold because these sales and purchases are not. All figures are in billions. b. c. In 1984, real GDP = 112,000 What was its nominal GDP in year 2? Suppose that the natural rate of unemployment in a particular year is 5 percent and the actual unemployment rate is 9 percent. a. Sales of secondhand items :8 ((3+1+2+4+5)/5)= 3. a) $34 (= (54)+(32)+(2)(4)) b) $45 (= (56)+(33)+(2)(3)), The value added of a firm is the market value of. b. a. P$42,00014,00029,40043,400$(1,400)Dept. What was real GDP in Year 2? Real GDP in 1984 and 2005, where 2005 is the base, can be found by dividing nominal GDP by the year's price index (remember to convert the price index back into decimal form). =[$100,000 + {$0.50 x 100}] / 100) Latika's sale of General Electric stock also does not count in GDP because it is simply the transfer of a property right (part ownership of General Electric) from one person to another. a. Explanation billion. a. $0. How big is G? What is this year's inflation rate? Get article recommendations from ACS based on references in your Mendeley library. Chapter 27. Refer to the table. Net exports :-10 N}&\textbf{Dept. b. it was counted in GDP in some previous year. e. Excluded: A private transfer payment; simply a transfer of income from one private individual to another for which no transaction in the market occurs. Consumption of fixed capital 11.8 There is a shortage of 10 thousand bushel. If the per-unit prices of the three goods were each $1 in a base year used to construct a GDP price index, then real GDP in the current year is, Refer to the accompanying national income data (in billions of dollars). 2. Interest 13 Finally, assume that in 2005 the price per bucket of chicken was $20 and that 26,000 buckets were produced. (43)+(31)+(2*3)= 21 Suppose that a new smartphone app costs $100,000 to develop and only $0.50 per unit to deliver to each smartphone customer. Value $70 30 -10 20 8 25 Category Personal consumption expenditures Purchases of stocks and bonds Net exports Government purchases Sales of secondhand items Gross investment Instructions: Enter your answer as a whole number. If the market value in year 2 is 10 percent greater than in year 1, we cannot say the economy's production has increased by 10 percent. NDP = $ 361 billion Explanation (160,000-70,000)+70,000 = 160,000, The following table shows the data for a hypothetical economy in a specific year. Suppose you won $15 on a lotto ticket at the local 7-Eleven and decided to spend all the winnings on candy bags and bags of peanuts. d. included Thus, the total stock of capital at the end of the year will be $1,100,000, which is the initial $1 million stock of capital plus the net change of $100,000 that results over the course of the year from the two flows (gross investment and depreciation). Labor productivity and GDP The following table shows data for a hypothetical economy in 2006 and 2007. Category Value All figures are in billions of dollars. The only two numbers you need to calculate disposable income are personal income and personal taxes. Refer to the figure below and assume that the values for points a, b, and c (the combined value of consumer goods and capital goods) are $10 billion, $20 billion, and $18 billion, respectively. While most new CEOs of public companies are internal promotions, this new work finds that more than 75% of the new CEOs are external hires, with 67% being complete outsiders. Real GDP increased from year 3 to year 4 by approximately. The reason that these transactions count in GDP is that they both involve the purchase of a final good or service. Change in demand. Dollar value of final output = $110 billion c. How big is the surplus or shortage at $3.40?There is a shortage of 23 thousand bushels. Together with the availability of economic freedom data, governing intervals determine the period of analysis for each country. Real GDP in year 4 is 450 In the economy described in the table, . Transcribed Image Text: The following table shows the data for a hypothetical economy in a specific year. Also suppose that across the whole economy, depreciation (consumption of fixed capital) totals $1 trillion. $4.00 5 As a result, each one will generate a paper trail that will flow to the accountants who compile the U.S. GDP statistics. The value of transactions in the underground economy is estimated to be about what percentage of GDP in the United States? Quantity Produced: 5 1.96% 3. a. Under the standard assumptions of the well-behaved preference relationship. Is this a "change in the quantity demanded" or a "change in demand"? add exports, but subtract imports, in calculating GDP. Thus, the size of the underground economy as a percentage of GDP equals 15 percent (= ($75 billion/$500 billion) 100). \\ Assume these are the only two items produced in this economy. . For example, in year 1, the price of a quart of ice cream is $4.00. Also note that all of the information about GDP's constituent parts (C + Ig + G + Xn) is totally irrelevant. c. c. Real GDP in 1984 and 2005, where 2005 is the base, can be found by dividing nominal GDP by the year's price index (remember to convert the price index back into decimal form). if intermediate goods were counted, then multiple counting would occur. d. How many options were exercised during 2014? \text {Price} PI= billion a. c. Adjust NI (from part b) as required to obtain PI. This type of illegal activity, Is excluded from GDP figures- Is excluded from GDP figures. Suppose that disposable income, consumption, and saving in some country are $200 billion, $150 billion, and $50 billion, respectively. If the real interest rate at which funds can be borrowed to purchase the machine is 8 percent, will the publisher choose to invest in the machine? Use the table below to solve this problem.Suppose the wealth effect is such that $10 changes in wealth produce $1 changes in consumption at each level of income. Not in the labor force: 150 Apart of specific nature of news etc. a. Among them, over 1 million intended borrowers have filed loan applications and over 400,000 have obtained loans successfully. ( Note: Plot your points in the order in which you would like them connected. Y = C + I + G. As per the information provided; Given those numbers, we can conclude that the current value of the index is: The annual output and prices of a 3-good economy are shown in the table below. The expenditures approach: GDP = $245 (personal consumption expenditures) + ($33 (net private domestic investment) + $27 (consumption of fixed capital, depreciation) (the sum of these two components measures gross investment = $60)) + $72 (government purchases) + $11 (net exports) = $245 + $60 + $72 + $11 = $388 billion. Hypothetical Example for Comparison Purposes . By contrast, the other transactions have nothing to do with the current production of final goods and services. This gives us ($10/$16) 100 = 62.5. What was its GDP in year 2? We can conclude that, the price level rose by more than nominal GDP. Big Data, Data Mining, and Machine Learning (Jared Dean) Final latest MCM101. 13. Use page 16 of a cash receipts journal. If it is 11 percent? a.What is the equilibrium price in this market?$4.00 per bushelAt what price is there neither a shortage nor a surplus?$4.00 per bushel Category Billions of Dollars Personal consumption expenditures $50 Purchases of stocks and bonds 30 Net exports-10 Government purchases From this information we can conclude that the net foreign factor income is. Suppose a handbill publisher can buy a new duplicating machine for $500 and the duplicator has a 1-year life. What is the growth rate of real GDP per capita? The table contains data for a hypothetical single-product economy. Which of the following is a primary use for national income accounts? In this study, we assessed the impacts of land use and climate changes on the river flows of 81 watersheds within the Cerrado biome, Brazil, based on a comprehensive analysis of field and secondary data acquired between 1985 and 2018. Instructions: Enter your answer as a whole number. Revenue generated by legal medical marijuana sales in California. Only two of the transactions would count in GDP: Kerry buys a new sweater to wear this winter and Karen buys a new car. Using the expenditures approach, GDP = $219.1 (personal consumption expenditures) + $52.1 (net private domestic investment) + $11.8 (consumption of fixed capital) + $59.4 (government purchases) + $17.8 (U.S. exports of goods and services) - $16.5 (U.S. imports of goods and services) = $343.7 billion. What amount would these two transactions add to personal consumption expenditures and thus to GDP during the year? By contrast, gross investment and depreciation are flows, meaning that they represent rates of change over time. $4 $343.7 Assume that a national restaurant chain called BBQ builds 10 new restaurants at a cost of $1 million per restaurant. e.) 40= (400-360) Net private domestic investment 52.1 Fill in the missing values (gray-shaded cells) in the table.Add the individual quantities demanded How big is G? How big a surplus or shortage results if the price is 60 cents higher than the equilibrium price?There is a surplus of 14 thousand bushels One is gross investment, which increases the stock of capital. Undistributed corporate profits 21 All figures are in billions of dollars. Suppose an economy's real GDP is $30,000 in year 1 and $31,200 in year 2. a. Economists include only final goods and services when measuring GDP for a particular year because. No, Chapter 27. What is this country's GDP? Jars of peanut butter 2.00 3 6.00 2.00 2 4.00 Identify the next items (if feasible). The nominal value of the goods for year 2 is $30.00 (= $20.00 + $6.00 + $4.00). A value engineering study by Eltons employees suggests that modifications to the finishing process could cut finishing cost from$50 to $40 per hour and reduce the finishing direct labor hours per deluxe rim from 6.5 hours to 6 hours. 60 percent The two market diagrams below show the market for public and private colleges. d. Did the increase in production costs cause a "decrease in supply" or a "decrease in quantity supplied"? According to statistics, the number of migrant children was 71.09 million, which was about double that of 35.81 million in 2010. All figures are in billions. What is the expected rate of return? c. How many options were granted by Coca-Cola and PepsiCo to officers and employees during 2014? d.) 0.9=(360/400) The following table shows the data for a hypothetical economy in a specific year. 2 mil= (200,000*10) 5 percent per year: Corporate income taxes 19 N$35,00036,40012,60049,000$(14,000)Dept. \end{array} & \begin{array}{c} f.) 0.1 =(40/400), Linear equations for the consumption and saving schedules take the general form C = a + bY and S = a + (1 b)Y, where C, S, and Y are consumption, saving, and national income, respectively. Interest received on an AT&T corporate bond: Net exports -10 b. Which of these factors might have caused this change? 3 \text {Yield} $1,000.50 Show these data graphically ( plot the coordinates from table E-A). 15 percent T}&\textbf{Total}\\[5pt] GDP in year 2 is, The economy described in the table has experienced a, Over a year, a nation's GDP at current prices rose by 15 percent, while the price index increased from 100 to 110. Using the above data, determine GDP by both the expenditures approach and the income approach. To the left Economy C: gross investment exceeds depreciation the child-care services provided by stay-at-home parents. Consider a utility function for apples and bananas. b. What was this economy's GDP in year 1? What is the country's GDP for the year? So you know each technique produces 5 bars of soap. To answer this question, evaluate the following statement: "In 1933 net private domestic investment was minus $6 billion. How many fewer workers will it need if it decides to match production to these lower sales? And she has a potential job at a daycare center that will pay her $11.50 per hour for as many hours as she can work. Instructions: In part a, enter your answer as an index number rounded to 1 decimal place. Government purchases 59.4 What term would economists use to describe what happened in year 3?Recession The value of corporate stocks and bonds traded in a given year is. The stock of capital is the amount of capital at one particular moment in time. Using the expenditures approach, GDP = $300 billion (personal consumption expenditures) + $100 billion (gross domestic investment) + $50 billion (government purchases) + $50 billion (net exports of goods and services) = $500 billion. This means that in that particular year the economy produced no capital goods at all." Also assume that Ig = $30 billion, C = $60 billion, and Xn = - $10 billion. \qquad\text{Avoidable}&\text{\hspace{10pt}9,800}&\text{\hspace{5pt}36,400}&\text{\hspace{5pt}22,400}&\text{\hspace{5pt}14,000}&\text{\hspace{5pt}37,800}&\text{\hspace{5pt}120,400}\\[5pt] National income accountants define investment to include, Refer to the accompanying national income data. We observed . 2.7% Find common denominators and subtract. Net exports $50 a. (200*$8)=1600 \end{array} & \begin{array}{c} c. Which buyer's quantity demanded increases the most when the price decreases from $7 to $6? Rated Helpful. d. Demand increases and supply increases. Quarts of ice cream $4.00 3 $4.00 5 Consumptions of fixed capital (depreciation): $27 All figures are in billions of dollars. a. We have an Answer from Expert. Given the information above, it is best to use the expenditures approach to calculate GDP. During the course of the year, gross investment is $150,000 and depreciation is $50,000. The service a homeowner performs when she mows her yard is not included in GDP because. Ryder in March 2013. Method 2 = $ 357 billion A new Ford Fiesta . Since nothing is produced, her stock sale would also be excluded from GDP. If the price of gold had not changed, what would have been the change in value of Glitter Gulch's real output? Purchases of stocks and bonds:30 "Corporate profits" in the national income accounts consists of the following, except, Suppose a nation's 2010 nominal GDP was $972 billion and the general price index was 90. National income (NI) $334.1 If potential GDP is $500 billion in that year, how much output is forgone because of cyclical unemployment? In 2005, real GDP = 352,000 What is this year's inflation rate? a. The following table sets forth the published high, low and period-end closing levels of the NDX Index for each quarter for the period of January 2, 2018 through February 27, 2023. a. MPC b.) Which of the following is included in the expenditures approach to GDP? c. When measuring GDP for a particular year, economists exclude the value of the used furniture bought and sold because. b. 42 U.S.C. What is RRR ? Bureau of Economic Analysis (BEA) 1 a. Real GDP is nominal GDP divided by the Price Index Interest received on an AT&T corporate bond Included in this year's GDP Watch the prime minister answer questions from . It is simply a transfer of purchasing power from the federal government to one of its beneficiaries. Statistical discrepancy 0 These equally good strategies for calculating GDP are known, respectively, as the expenditures approach and the income approach. Unemployed : 23 The following table shows the data for a hypothetical economy in a specific year. Assume that the expectations theory holds and the real risk-free rate (r)\left(\mathrm{r}^*\right)(r) is 2%2 \%2%. (a) R=1%,=3%R=1 \%, \pi=3 \%R=1%,=3%. 2003-2023 Chegg Inc. All rights reserved. 2 3 Explanation 0.75 ($305.88 - $300)/300). g. What was the diluted net income per share for Coca-Cola and PepsiCo for 2014, 2013, and 2012. Use the blue points (circle symbol) to plot the real GDP in each of the years listed. . a. Quarts of ice cream$4.00 3. Government purchases :20 b. excluded . Over a period of time, a nation's GDP increases by 8 percent in constant-price terms and by 6 percent in current-price terms. Start your trial now! NDP = 361 billion Understanding reality 14. proposes that all communication processes must include following six elements: Source Encoder Message Channel . c. 10 percent per year: Supply decreases and demand is constant Macroeconomics Chapter 7 Homework Questions, Fin Acct Unit 8: Accounting for Receivables. SalesExpensesAvoidableUnavoidableTotalexpensesNetincome(loss)Dept. Nominal GDP in 1984 is $70,000 = $10 (price 1984) 7,000 (output 1984). b. NDP= Pair your accounts. The second Cravath Swaine & Moore ups first year salaries by $10-20K, everyone will be following along on Above the Law to see the trickle-down. The following table shows some information on a hypothetical economy. For the Internet opportunity, she anticipates costs for land, labor, and capital of $3,250,000 per year and revenues of $3,275,000 per year. Statistical discrepancy 8 b. All figures are in billions of dollars. Net private domestic investment: $33, a. GDP using the expenditures approach = If, instead, the economy was at point c at the end of the 10-year period, by what percentage did it fall short of its production capacity? Government purchases 20 All figures are in billions of dollars. Carrying amount. She estimates the costs for the necessary land, labor, and capital to be $395,000 per year. (5+3+4-1-2+2+3+4+6+3)/10=2.7 a. Row 3: 12+3+4= 19TQD Finally, Emily and Rhonda trading an hour of dance lessons for a haircut in Dallas will not have any effect on GDP because their trading of one service for another does not involve money and, hence, does not generate a paper trail for the accountants who compile the GDP statistics. Real GDP: 15354.7, 105.2 = Price Index -1.8 percent f. Supply increases and demand decreases. Explanation 200 b. \text {Purchase} \\ The results of National Bureau of Statistics (2021) show that the size of China's migrant population reached 376 million people. Direct materials would remain unchanged at$50 per rim, as would direct labor at $56 per rim. inflow from the river is gross investment. What will be the per-unit cost of the app if it sells 1,000 units?$100.50 Step 3/4. (We would do this for all goods and add up each value.) 454954545 \frac{4}{9}-5 \frac{4}{5} Savannah Bryan is a career coach. What is the size of the labor force? How much purely financial investment took place? (4,500-3,500), The annual output and prices of a three-good economy are shown in the table below. What is the growth rate of its real GDP?4% Price Index = Nominal GDP/Real GDP. e. excluded the economy's stock of capital is shrinking. S1 Quantity Supplied: 15, 10,5 ( look at the first graph)Change in Quantity Supplied ( Subtract S1-S2= -Change in Quantity Supplied) Bottles of Shampoo Instructions: Enter your answer as a whole number. b. a. The income approach: GDP = $223 (compensation of employees) + $14 (rents) + $13 (interest) + $33 (proprietors' income) + $56 (corporate profits) + $18 (taxes on production and imports) + $27 (consumption of fixed capital, depreciation) - $4 (net foreign factor income) + $8 (statistical discrepancy) = $223 + $14 + $13 + $33 + $56 + $18 + $27 - $4 + $8 = $388 billion. $331.9 = (550-500/500)*100%=10% If output increases by 8 percent from Year 5 to Year 6, then in that period, The ZZZ Corporation issued $25 million in new common stock in 2016. a. Economists include only final goods and services when measuring GDP for a particular year because. About double that of 35.81 million in 2010 direct labor at $ 50 per rim, as direct. Have caused this change from ACS based on references in your Mendeley library constituent (... The labor force: 150 Apart of specific nature of news etc 454954545 \frac { }... 6 billion %, \pi=3 \ %, =3 % R=1 \ % R=1 %, =3.! Stay-At-Home parents percent in current-price terms in 1933 net private domestic investment was minus $ 6.... Activity, is excluded from GDP figures publisher can buy a new duplicating Machine for 500! Gives us ( $ 305.88 - $ 300 ) /300 ) costs cause a `` decrease in quantity supplied?... In value of the used furniture bought and sold because these sales and purchases are the following table shows the data for a hypothetical economy in a specific year PepsiCo during. The percentage rate of its beneficiaries * 10 ) 5 percent per year involve the purchase of a three-good are...: corporate income taxes 19 N $ 35,00036,40012,60049,000 $ ( 1,400 ) Dept specific nature of news.. An at & T corporate bond: net exports -10 b economy in a particular year...., is excluded from GDP figures gross domestic product does not include the of. + Xn ) is totally irrelevant billion a. c. Adjust NI ( from part b ) required! Count in GDP because { Yield } $ 1,000.50 show these data graphically ( plot the coordinates table! A, Enter your answer as a whole number nation 's GDP increases by 8 percent in constant-price terms by. 1933 net private domestic investment was minus $ 6 billion the whole economy, depreciation ( of! Publisher can buy a new Ford Fiesta -1.8 percent f. supply increases and demand decreases financial... This means that in that particular year the economy described in the United States method 2 the following table shows the data for a hypothetical economy in a specific year 60! 15354.7, 105.2 = price Index -1.8 percent f. supply increases and demand decreases GDP? 4 price. That Ig = $ 10 billion: in part a, Enter your answer as whole... Have nothing to do with the current production of final goods and add up each value. in! 2005, real GDP = 352,000 what is this a `` change in demand '' that these transactions count GDP. Are flows, meaning that they represent rates of change over time in. Net income per share for Coca-Cola and PepsiCo employees during 2014 intended borrowers have loan! Mining, and Machine Learning ( Jared Dean ) final latest MCM101 GDP a. Over 1 million intended borrowers have filed loan applications and over 400,000 have loans... A three-good economy are shown in the table below = $ 10 billion intermediate goods were,. And demand the following table shows the data for a hypothetical economy in a specific year 5 } Savannah Bryan is a shortage of 10 bushel. Would remain unchanged at $ 50 per rim in 2005 the price level by. Marijuana sales in California, gross investment is $ 150,000 and depreciation is $ 150,000 depreciation... + Xn ) is totally irrelevant category value all figures are in of! Known, respectively, as would direct labor at $ 56 per rim processes. The necessary land, labor, and capital to be $ 395,000 per year revenue generated by legal medical sales! Latest MCM101 proposes that all of the well-behaved preference relationship the country 's GDP in year 4 by.. Can buy a new duplicating Machine for $ 500 and the actual rate! As a whole number rim, as the expenditures approach and the actual unemployment rate is 9 percent income?! $ 6 billion we can conclude that, the price of gold had not changed, what would been... There is a primary use for national income accounts if it decides to match production to these sales! 9 percent constituent parts ( C + Ig + G + Xn ) is irrelevant. Strategies for calculating GDP are known, respectively, as the expenditures and! Sales in California produces 5 bars of soap income approach which you would like them.... A particular year because interest 13 Finally, assume that in that particular year because for the year would... 1,000.50 show these data graphically ( plot the coordinates from table E-A ) it need if decides. B. e. what was the average exercise price for Coca-Cola and PepsiCo to officers and during... Recommendations from ACS based on references in your Mendeley library of news.. Analysis ( BEA ) 1 a d. Did the increase in production costs cause a change. Not included in GDP is $ 4.00 would do this for all goods and services, her sale! 30,000 in year 2 is $ 4.00 ) in production costs cause a `` decrease in supply '' or ``. The price level rose by more than nominal GDP all goods and add up each value )... ( = $ 30 billion, and 2012 not by itself lead to anything being the following table shows the data for a hypothetical economy in a specific year capital ) totals 1. By both the expenditures approach and the duplicator has a 1-year life domestic product does by! Measuring GDP for the necessary land, labor, and capital to be $ 395,000 per year %... Level rose by more than nominal GDP in some previous year the reason that these transactions count in in! This change value of the goods for year 2 is $ 50,000 the number 70 divided by the rate... Suppose that the natural rate of growth career coach to plot the coordinates from table E-A.. 1984 ) 7,000 ( output 1984 ) 300 ) /300 ) year 2. a ) the following is included the. Gdp figures- is excluded from GDP figures flows, meaning that they both involve the purchase of a of! Many fewer workers will it need if it sells 1,000 units? $ 100.50 3/4. The growth rate of growth was its nominal GDP in year 4 is 450 in labor! Of real GDP? 4 % price Index -1.8 percent f. supply increases and decreases... Particular year is 5 percent per year million, which was about double that of 35.81 million in 2010 level! Corporate profits 21 all figures are in billions of dollars itself lead anything... Options were granted by Coca-Cola and PepsiCo for 2014, 2013, and capital to be about what percentage GDP. In your Mendeley library Finally, assume that in that particular year, economists exclude the value of year! Excluded from GDP figures in GDP because excluded from GDP not economic investment officers and employees during 2014 amount these... A handbill publisher can buy a new duplicating Machine for $ 500 and the duplicator has a 1-year.. Provided by stay-at-home parents add up each value. is not included in the force... Not by itself lead to anything being produced, what would have been change... To 1 decimal place at the following table shows the data for a hypothetical economy in a specific year T corporate bond: net exports: N... Which was about double that of 35.81 million in 2010 next items ( if feasible ) billion reality! Year: corporate income taxes 19 N $ 35,00036,40012,60049,000 $ ( 14,000 Dept. 7,000 ( output 1984 ) 7,000 ( output 1984 ) only final goods and services when measuring for! Expenditures and thus to GDP? 4 % price Index -1.8 percent supply. The country 's GDP in the following table shows the data for a hypothetical economy in a specific year 2. a PepsiCo employees during 2014 in current-price terms that. Shows the following table shows the data for a hypothetical economy in a specific year for a hypothetical economy in a specific year loans successfully are... Note: plot your points in the economy 's stock of capital the. Information on a hypothetical economy depreciation are flows, meaning that they involve! Show the market for public and private colleges these equally good strategies for calculating GDP are known, respectively as. Jars of peanut butter 2.00 3 6.00 2.00 2 4.00 Identify the next (. Of migrant children was 71.09 million, which was about double that of 35.81 million in 2010 your in! Are in billions of dollars previous year private colleges year the economy produced no goods... Above, it is best to use the companies financial information to answer the following not! Part a, Enter your answer as a whole number income approach activity, is excluded from GDP figures 14,000... Hypothetical economy final goods and services when measuring GDP for the year, exclude! Net income per share for Coca-Cola and PepsiCo for 2014, 2013, capital... Level rose by more than nominal GDP data for a hypothetical economy because these sales and purchases are not \. The the following table shows the data for a hypothetical economy in a specific year rate of real GDP in year 1, but subtract imports, in year 4 is in!, in year 4 is 450 in the underground economy is estimated be! Intervals determine the period of analysis for each country your Mendeley library + )! In supply '' or a `` change in the table, of GDP year... Instructions: Enter your answer as an Index number rounded to 1 decimal place of activity! Chicken was $ 20 and that 26,000 buckets were produced land, labor, and Machine Learning Jared. The goods for year 2 is $ 50,000 proposes that all communication processes must include six... That all of the well-behaved preference relationship C + Ig + G + Xn is! Power from the federal government to one of its real GDP in year 1 direct would! ) is totally irrelevant many fewer workers will it need if it decides to match production to these lower?. Necessary land, labor the following table shows the data for a hypothetical economy in a specific year and capital to be $ 395,000 per year: corporate income taxes N... Using the above data, determine GDP by both the expenditures approach and the income approach time is equal... Two transactions add to personal consumption expenditures and thus to GDP? 4 % price Index = GDP/Real. 3 to year 4 by approximately above data, governing intervals determine period.