+1-415-670-9189
info@expertsmind.com
What is the composition of gdp by percentage
Course:- Macroeconomics
Reference No.:- EM13784788




Assignment Help
Expertsmind Rated 4.9 / 5 based on 47215 reviews.
Review Site
Assignment Help >> Macroeconomics

Question:

Part I

Assume that Country A has a population of 500,000 and only produces 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 10,000 cars are bought by companies to transport employees to other locations to work. They also export 65,000 cars to nearby countries for sale. Discuss the following:

What is Country A's GDP?

What is the composition of GDP by percentage?

What is the GDP per capita?

How does this relate to Keynesian economics?

Part II

Go to the Bureau of Economic Analysis at this Web site, and look up the latest new release for real GDP. Address the following questions after reading the latest release:

Where is the United States in the business cycle?

What is the real GDP today?

What is the largest component of GDP?

What is the smallest component of GDP?

What is the fastest growing component of GDP, and why?

What components of GDP were involved in the change from last month to this month?

What is the price index today?

What caused the change?

Answered:-

Verified Expert


Preview Container content

Keynesian economics believed strongly on the demand forces while classical economists were on the view that supply creates its own demand. Keynesian economics believed in the short run specially during the time of economic recessions when the economic output strongly influenced by the aggregate demand of the economy.

According to Keynesian economics, government intervention plays a vital role to maintain the stable equilibrium in the economy. Keynesian theory advocates that market is imperfect and not self-sustaining rather government intervention is highly required to maintain the full employment equilibrium.

Keynesian economics formulated an income expenditure model where total income is comprised of consumption expenditure, investment expenditure, government expenditure and net exports The equilibrium level of GDP can be determined at the point where aggregate demand is equal to aggregate expenditure Y=AE.
Since we have applied the same concept in our above analysis, this is closely related to Keynesian economics.




Put your comment
 
Minimize


Ask Question & Get Answers from Experts
Browse some more (Macroeconomics) Materials
Elucidate each of the folling statements using supply and demand diagrams. When a cold snap hits Florida, the price of orange juice rises in super marlets through out the coun
In the last decade or so there has been a dramatic expansion of small retail convenience stores (such as Kwik Shops, WaWa, 7-Elevens, Gas ‘N Shops) although their prices are
what is the major problem in achieving an efficient use of the worlds water if there were a global market in water, like there is in oil, how do u think the market would wor
Barramundi Inc. stock is currently selling at $40 per share (its equilibrium price) provide that the risk free interest rate is 8% and the equilibrium risk premium on the ma
What implicit weight is placed on the inflation target under this rule? Discuss. Draw an IS-MP diagram but instead of the usual MP curve, graph the monetary policy rule.
a.) Describe five (5) ecosystem goods and services of the Neponset River Watershed. b.) Assign dollar ($) values to these 5 ecosystem goods and services of the Neponset Rive
You will create a PowerPoint presentation discussing the rights and obligations of the healthcare workforce regarding access and disclosure of health information and summari
This assignment, an Article Review, will assist you in thinking critically about sentencing in the United States. To begin this assignment, please access the CSU Online Libr