Calculate the real GDP and nominal GDP

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Question 1: The table above gives some of the items in the U.S. National Income and Product Accounts in 2010.

ITEM

$

Wages

3,900

Consumption Expenditure

4,000

Taxes

400

Interest, rent, and profit

1,400

Investments

1,100

Government Expenditure

1,000

Depreciation

1,329

Net export

300

1. Calculate U.S. GDP in 2010? Precise which approach did you use.

2. Calculate the net domestic product?

3. I sell my car, a 2005 Chevrolet, for $5,000 in May of 2015. Does this transaction affect the GDP of 2015? Justify your answer.

Question 2: Use the following information to answer this set of questions.

Item

Price in 2012

Quantity in 2012

Price in 2013

Quantity in 2013

Price in 2014

Quantity in 2014

Bikes

$100

10

$150

10

$150

20

Pencils

$1

100

$1

100

$2

50

Telephones

$100

20

$80

50

$60

80

a. Calculate nominal GDP for 2012, 2013, and 2014. Show the formula and the details of your calculation.

b. Calculate real GDP for 2012, 2013, and 2014 using 2012 as the base year? Show the formula and the details of your calculation.

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We have computed real GDP, Nominal GDP in this paper. Also US GDP and Net Domestic Product has been computed based on numerical details provided.

Reference no: EM131685699

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1/20/2018 5:10:00 AM

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10/21/2017 5:45:23 AM

Subject: Macroeconomics. Kindly answer the questions. Note: This Assignment accounts for 10 % of the student's final grade. I sell my car, a 2005 Chevrolet, for $5,000 in May of 2015. Does this transaction affect the GDP of 2015? Justify your answer.

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