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?