Calculate the net domestic product

Assignment Help Macroeconomics

Reference no: EM131685688

Question 1: The table above gives some of the items in the U.S. National Income and Product Accounts in 2010.

ITEM	$
Wages	3,900
Consumption Expenditure	4,000
Taxes	400
Interest, rent, and profit	1,400
Investments	1,100
Government Expenditure	1,000
Depreciation	1,329
Net export	300

1. Calculate U.S. GDP in 2010? Precise which approach did you use.

2. Calculate the net domestic product?

3. I sell my car, a 2005 Chevrolet, for $5,000 in May of 2015. Does this transaction affect the GDP of 2015? Justify your answer.

Question 2: Use the following information to answer this set of questions.

Item	Price in 2012	Quantity in 2012	Price in 2013	Quantity in 2013	Price in 2014	Quantity in 2014
Bikes	$100	10	$150	10	$150	20
Pencils	$1	100	$1	100	$2	50
Telephones	$100	20	$80	50	$60	80

a. Calculate nominal GDP for 2012, 2013, and 2014. Show the formula and the details of your calculation.

b. Calculate real GDP for 2012, 2013, and 2014 using 2012 as the base year? Show the formula and the details of your calculation.

Reference no: EM131685688

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len1685688

10/21/2017 5:41:34 AM

Subject: Macroeconomics. Kindly answer the questions. Note: This Assignment accounts for 10 % of the student's final grade. Calculate real GDP for 2012, 2013, and 2014 using 2012 as the base year? Show the formula and the details of your calculation.

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