Economics Homework Help
CUNY BMCC What Is the Importance of Measuring Per Capita GDP Questions
1. Provide the formula for the expenditure approach to GDP accounting and include an example of each category of spending.
2. Using the expenditure approach, calculate GDP using the following data.
|
Item |
Amount in dollars (billions) |
|
Total Consumption |
8,000 |
|
Consumption of Durable Goods |
2,000 |
|
Consumption of Non Durable Goods |
2,800 |
|
Consumption of Services |
3,200 |
|
Total Investment |
5,000 |
|
Fixed Investment |
1,000 |
|
Government purchases of Goods & Services |
3,000 |
|
Government Transfer Payments |
450 |
|
Exports |
1,000 |
|
Imports |
2,000 |
|
GDP Equals |
3. a. What is the importance of measuring per capita GDP?
b. Why nominal GDP can be misleading?
4.Explain how GDP can be calculated using the income approach.
