Please show how you got your answers. Thank you 4) The table below contains data

Question

Please show how you got your answers. Thank you

4) The table below contains data for country A for the year 2010 Household purchases of durable goods $1293 Household purchases of nondurable goods Household purchases of services $301 Household purchases of new housing Purchases of capital equipment Inventory changes $704 $310 $374 $611 Purchases of new structures Depreciation $117 Salaries of government workers $1422 Government expenditures on public works $553 Transfer payments $777 $88 Foreign purchases of domestically produced goods Domestic purchases of foreign goods $120

Explanation / Answer

The formula for the GDP in 2010 by expenditure method is

GDP =C+G+I+X-M

(b) C=household purchases of durable goods 1293 + household purchases of nondurable goods 1717 +household purchases of services 301

=1293+1717+301=3311

(d) G=Government expenditures on public works 553 + Transfer payments 777

=553+777 =1330

(b) I =household purchases of new housing 704 + household of capital equipment 310 + Inventory changes 374 + purchases of new structures 611

= 704+310+374+611=1999

(e) X= Foreign purchases of domestically produced goods 88

M=Domestic purchases of foreign goods 120 and Net Exports =88-120=-32

(a) So GDP= 3311+1330+1999+88-120 = 6608

Note: All figures are in dollars

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