Problems & Exercises for MACRO
UNIT THREE (FOR EXAM THREE)
Unit Three--Assignment One--Web Problem 1
UNIT THREE (FOR EXAM THREE) Unit Three--Assignment One--Web Problem 1Problems & Exercises for MACRO
Using the following data, determine GDP, NDP, NI, PI, and DI. To obtain your GDP starting point, use C + I + G + F = Aggregate Demand = GDP, where
|
C = |
Consumption |
|
I = |
Investment |
|
G= |
Government Purchases |
|
F = |
Foreign Trade (Exports – Imports) |
|
Consumption Spending |
$400 |
|
Depreciation |
40 |
|
Retained Earnings |
24 |
|
Gross Investment |
130 |
|
Imports |
80 |
|
Exports |
100 |
|
Social Insurance Taxes |
50 |
|
Indirect Business Taxes |
30 |
|
Government Purchases |
120 |
|
Government Transfer Payments |
70 |
|
Personal Income Taxes |
90 |
|
Corporate Profits Taxes |
20 |
(By the way, in a huge macroeconomy, the numbers may be in billions, but it won’t do any good to add a lot of zeros, so we’ll omit those.)
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|
C |
400 |
|
I |
130 |
|
G |
120 |
|
F |
20 |
|
A.D.=GDP |
670 |
|
GDP |
670 |
|
- Deprec. |
-40 |
|
NDP |
630 |
|
-I.B.T. |
-30 |
|
NI |
600 |
|
-Ret. E. |
-24 |
|
-Soc. Ins. |
-50 |
|
-Corp. Prof. Taxes |
-20 |
|
+Transfers |
+70 |
|
PI |
576 |
|
-Pers. Inc. Taxes |
-90 |
|
DI |
486 |
|
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