What is the largest component of gdp
Course:- Macroeconomics
Reference No.:- EM13795757

Assignment Help
Assignment Help >> Macroeconomics

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

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?

Put your comment

Ask Question & Get Answers from Experts
Browse some more (Macroeconomics) Materials
Explain how does that rate compare with the rate in the previous month. What were the unemployment rates for adult men, adult women, teenagers, blacks, Hispanics, and whites
Many controversial issues in public finance concern when a central authority should allow markets to work and when it should intervene. Generally we think of the government
How Indonesia has adjusted to the period of a G-Zero World (i.e., instability and public spending cuts) and the Beijing Consensus; how developed is the country in regard to th
1) Calculate the price P the monopolist will set, the corresponding Q, and the monopolist's profits. 2) Suppose there is a technology the monopolist can adopt, for a fixed c
Explain why do you think we have laws that prohibit discrimination in pay based on sex or race but permit employers to discriminate in pay based on education or experience.
A well-known conglomerate that manufactures a multitude of noncompeting consumer products instituted a corporate-wide initiative to encourage the managers of its many divisi
Now suppose the same game is played with the exception that Player A moves first and Player B moves second. Draw the game tree associated with this situation. Using the back
Refer to the following exhibit. a. If the price of each karate lesson is P0, the consumer surplus is equal to what area? b. If the price falls from P0 to P1, the change in con