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Consider the following NIPA data for 1Q2021 (First Quarter 20210
| $ billlion) | ||
| Investment: Non Residential | $2,948.3 | |
| Exports | $2,305.3 | |
| PCE Goods | $5,183.5 | |
| Investment: Residential | $1,043.7 | |
| Government Expendiures Federal | $1,557.0 | |
| PCE Services | $9,857.7 | |
| Imports | $3,152.3 | |
| Governemnt Expenditures : State and local Goernent Expenditures | $2,395.9 | |
| Change in private inventories | -$90.1 |
2a. Compute the weights of each of PCE, GPDI, NX and GOV) in
2b. Consider the following rates of change (%) for each of the above items.
| % change | |
| PCE | 10.70% |
| GPDI | -5.00% |
| NX | -6.80% |
| GOV | 6.30% |
Step by step
Solved in 2 steps
- Consider the following NIPA data for 1Q2021 (First Quarter 20210 $ billlion) Investment: Non Residential $2,948.3 Exports $2,305.3 PCE Goods $5,183.5 Investment: Residential $1,043.7 Government Expendiures Federal $1,557.0 PCE Services $9,857.7 Imports $3,152.3 Governemnt Expenditures : State and local Goernent Expenditures $2,395.9 Change in private inventories -$90.1 1. Write the formula for GDP Compute the following: 2. Personal Consumption Expenditures (PCE): 3. Gross Private Domestic Investment (GPDI) 4. Net Exports (NX) 5. Government Expenditures (GOV) 6. GDP9- 9 - What is the ratio of savings to disposable income called? a) MPS B) cY NS) APS D) MRI TO) NSTable 24.8 Consumption Spending All Figures in Billions of Dollars Planned Investment Output Income) Net Taxes (C=100+ 0.9Y) Savings Purchases 2,600 2,800 3,000 3,200 3,400 3,600 3,800 100 100 100 100 100 100 100 2,350 2,530 2,710 2.890 3,070 3,250 3,430 150 170 190 210 230 250 270 150 150 150 150 150 150 150 Government Spending 200 200 200 200 200 200 200 le Refer to Table 24.8. The equilibrium level of income is Lütfen birini seçin: O A. $3,600 billion O B. $3,400 billion OC $2,600 billion. O D. $3,800 billion O E. $3,200 billion 8888888
- Refer to the following graph to answer the next three questions. Interest rate $50 billion S 5% 4% D2 D₁ $125 $150 government borrowing (billions of dollars) Savings, investment, According to the graph, private investment of crowding-out. decreased by $50 billion O remained unchanged increased by only $25 billion decreased by $25 billion increased by $50 billion as a resultDiscuss the important features of the public budget and the relationshipbetween revenues and expenditures.Table 24.8 All Figures in Billions of Dollars Comsumption Spending Imcome) Net Taxes (C=100 + 0.9Yd) 2,350 2,530 2,710 2,890 3,070 3,250 3,430 Planned Investment Purchases 150 150 150 150 150 150 150 di Output Savings 150 170 190 210 230 250 270 Government Spending 200 200 200 200 200 200 200 en 2,600 2,800 3,000 3,200 3,400 3,600 3,800 100 100 100 100 100 100 100 aretle Refer to Table 24.8. The economy is at the equilibrium level of output. If government spending increases by $200 billion, the new equilibrium level of output is Lütfen birini seçin: O A. $4,400 billion O B. $4,000 billion OC $5,600 billion O D. $4,600 billion. O E $3,800 billion
- Refer to the data in the table below to answer the following question. Federal Budget: 2012 Line Item National Defense Human Resources Medicare Other Physical Resources Net Interest Other Functions Undistributed Offsetting Receipts Total 2012 In millions of dollars 635,698 2,942,658 451,208 2,491,450 220,255 290,496 185,702 - 180,820 4,093,989 Compute the ratio as a percentage of Physical Resources to Human Resources and determine the best interpretation of the percentage. O Physical Resources spending is 7% as much as the amount spent on Human Resources. O Human Resources spending is 7% as much as the amount spent on Human Resources. O The amount spent on Physical Resources is 8%. O Physical Resources is 17% of the budget.Refer to the information provided in Table Table Compensation of employees Proprietors' income Corporate profit Net interest $Billions 475 60 40 25 Rental income Deprecation Indirect taxes 10 70 40 Direct taxes 80 Subsidies 15 Pay ments of factor income to the rest of the world Receipts of factor income from the rest of the world 20 15 Refer to Table The value of disposable income in billions of dollars Select one: a. cannot be calculated given the information in Table b. is 505. C. is 605. d. is 560.Table 24.8 All Figures in Billions of Dollars Consumption Spending Income) Net Taxes (C=100 +0.9Yd) 2,350 2,530 2,710 2,890 3,070 3,250 3,430 Planned Investment Purchases 150 150 150 150 150 150 150 Output 2,600 2,800 3,000 3,200 3,400 3,600 3,800 100 100 100 100 100 100 100 Savings 150 170 190 210 230 250 270 Government Spending 200 200 200 200 200 200 200 le Refer to Table 24.8. The value of the tax multiplier is Lütfen birini seçin: O A. -5 O B. 10 OC -10 O D.-4 OE-9
- 1. Tina is the sole owner of Tina's Lawn Mowing, Incorporated (TLM). In one year, TLM collects $1,000,000 from customers to mow their lawns. TLM's consumption of fixed capital (depreciation) is $125,000. TLM pays $600,000 to its workers, who pay $140.000 in taxes on this income. TLM pays $50,000 in corporate income taxes and pays Tina a dividend of $150,000. Tina pays taxes of $60,000 on this dividend income. TLM retains $75,000 of earnings in the business to finance future expansion. How much does this economic activity contribute to each of the following? a. GDP b. NDP c. National income d. Compensation of employees e. Proprietors' income f. Corporate profits g. Personal income h. Disposable personal incomeTable 24.8 All Figures in Billions of Dolllars Comsumption Spending Income) Net Taxes (C=100 +0.9Yd) 2,350 2,530 2,710 2,890 3,070 3,250 3,430 Planned Investment Purchases 150 150 150 150 150 150 150 Outpat 2,600 2,800 3,000 3,200 3,400 3,600 3,800 100 100 100 100 100 100 100 Savings 150 170 190 210 230 250 |270 Government Spending 200 200 200 200 200 200 200 etle Refer to Table 24.8. If taxes are reduced from $100 billion to $50 billion, the new equilibrium level of output is Lütfen birini seçin: O A. $4,050 billion O B. $1,600 billion O C. $3,850 billion O D. $1,800 billion O E $2,100 billionTable 6.3 SINlions DO out of Compensation of employees Proprietors' income Corporate protit Net interest Rental income Deprecation Indirect taes 475 60 40 25 10 70 40 Direct taxes Subsidies Payments of tactor income to the rest of the world Receipts of factor income from the rest of the world 80 15 20. 15 Refer to Table 6.3. The value of disposable Income in billons of dollars Select one: a. cannot be calculated given the information in Table ó.3. b. Is 505. c is 560. d. is 605.