Calculate gdp via the expenditure approach

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Reference no: EM13862569

1. To which category of U.S. GDP expenditure does each of the following correspond?

a. Department of Motor Vehicles services

b. Automobiles exported to Europe

c. a refrigerator

d. a newly constructed four-bedroom house

e. a restaurant meal

2. Using any relevant information below, calculate GDP via the expenditure approach.

Inventory investment $50 billion

Fixed investment $120 billion

Consumer nondurables $275 billion

Interest $140 billion

Indirect business taxes $45 billion

Government wages and salaries $300billion

Government purchases of goods and services $110 billion

Imports $80 billion

Exports $40 billion

Profits $320 billion

Services $600 billion

3. Nominal GDP in Nowhereland in 2002 and 2003 increased from $4 trillion to $4.8 trillion. Can you say that the production of goods and services in Nowhereland has increased between 2002 and 2003? Why or why not?

 

4. For 2008, GDP in the United States was estimated at $14.265 Trillion Dollars. If the estimated population was 303 million, what was the GDP per capita that year? What share of GDP would accrue to a family of four?

Reference no: EM13862569

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