Question

Gross Domestic Product Title: Grantham Copyright - Description: Grantham Copyright 2018Use the data chart to answer the questions below. Consumption $500 Government Expenditures $200 GNP $800 Gross Private Domestic Investment $100 Imports $100 Exports $50

Questions:

1. Using the data above, GDP is equal to __________________.
2. Using the data above, Net Exports is equal to _____________.
3. Using the data above, PCE (Personal Consumption Expenditure) is equal to _____________.
4. If the dollar amounts of the items above are the nominal amounts in year 2017, and the quantities of units are identical in years 2010 and 2017, but prices in 2010 were 20% less than 2017, Real GDP in 2017 using 2010 as the base year is equal to _______________.

Answer 1

1. $ 750

2. - $ 50

3. $ 600

4. $ 600

Step-by-step explanation:

1. Using the data GDP = C+I+G+ (X-M)

GDP= $500 +$100 + $ 200 + ($50-$100)

GDP= $ 800 + (-50)

GDP = $ 750

2. NET EXPORTS = EXPORTS - IMPORTS= $ 50- $ 100= -$50

3. PCE= Consumption+ Private Domestic Investment= $ 500 + $ 100= $ 600

4. GDP 2017= $ 750 *80%= $ 600