Deprecated: Methods with the same name as their class will not be constructors in a future version of PHP; JSON has a deprecated constructor in /home/clouawmm/public_html/wp-content/plugins/calculated-fields-form/cp_calculatedfieldsf.php on line 2264
Solutions to Econ Chapter 24 Key Questions - Cloud Essays

Browse Our Directory

Solutions to Econ Chapter 24 Key Questions

$5.00

Solutions to Econ Chapter 24 Key Questions

24-3     (Key Question)  Why do economists include only final goods in measuring GDP for a particular year?  Why don’t they include the value of stocks and bonds sold?  Why don’t they include the value of used furniture bought and sold?

24-8     (Key Question)  Below is a list of domestic output and national income figures for a given year.  All figures are in billions.  The questions that follow ask you to determine the major national income measures by both the expenditure and income methods.  The results you obtain with the different methods should be the same.

   
Personal consumption expenditures

Net foreign factor income

Transfer payments

Rents

Statistical discrepancy

Consumption of fixed capital (depreciation)

Social security contributions

Interest

Proprietors’ income

Net exports

Dividends

Compensation of employees

Taxes on production and imports

Undistributed corporate profits

Personal taxes

Corporate income taxes

Corporate profits

Government purchases

Net private domestic investment

Personal saving

$245

4

12

14

8

27

20

13

33

11

16

223

18

21

26

19

56

72

33

20

   

 

  1. Using the above data, determine GDP by both the expenditure and the income approaches. Then determine NDP.
  2. Now determine NI: first, by making the required additions and subtractions from GDP; and second, by adding up the types of income and taxes that make up NI.
  3. Adjust NI (from part b) as required to obtain PI.
  4. Adjust PI (from part c) as required to obtain DI.

24‑11   (Key Question) Suppose that in 1984 the total output in a single-good economy was 7,000 buckets of chicken.  Also suppose that in 1984 each bucket of chicken was priced at $10.  Finally, assume that in 2000 the price per bucket of chicken was $16 and that 22,000 buckets were purchased.  Determine the GDP price index for 1984, using 2000 as the base year.  By what percentage did the price level, as measured by this index, rise between 1984 and 2000? Use the two methods listed in Table 24.6 to determine real GDP for 1984 and 2000.

24-12   (Key Question)  The following table shows nominal GDP and an appropriate price index for a group of selected years.  Compute real GDP.  Indicate in each calculation whether you are inflating or deflating the nominal GDP data.

       
 

Year

Nominal GDP,

Billions

Price index

(2000 = 100)

Real GDP,

Billions

       
       
1964

1974

1984

1994

2004

 

$663.6

1500.0

3933.2

7072.2

11734.3

 

  22.13

34.73

67.66

90.26

109.10

 

  $ ______

$ ______

$ ______

$ ______

$ ______

 

SKU: solutions-to-econ-chapter-24-key-questions Category:
Share this Solution with a Classmate