Part-1assume that country a has a population of 500000 and

Reference no: EM13375722

Part-1

Assume that Country A has a population of 500,000 and only produces one good-cars. Country A produces 100,000 cars per year. The people in Country A purchase 90,000 cars, but there are not enough cars to fulfill all the demand. They decide to import 50,000 more. The government buys 25,000 cars for its police force, and 10,000 cars are bought by companies to transport employees to other locations to work. They also export 65,000 cars to nearby countries for sale.

What is Country A's GDP?

What is the composition of GDPby percentage?

What is the GDP per capita?

If government purchases go up in the short run, what happens to GDP? Show this graphically.

If consumption and government purchases go up, what happens to GDP in the long run? Why? How would this look in a graph?

How does this relate to Keynesian economics?

Part-2

Go to the Bureau of Economic Analysis on the Department of Commerce's Web site, and look up the latest new release for real GDP.
Where are we in the business cycle?

What is the real GDP today?

What is the nominal GDP today?

What is the difference between nominal and real GDP?

What is the largest component of GDP?

What is the smallest component of GDP?

What is the fastest growing component of GDP and why?

What components of GDP were involved in the change from last month to this month?

What is the price index today?

What caused the change?

Is the GDP price index different from the CPI? How so?

Which price index-CPI, GDP, or PPI-makes the most sense to you?

Reference no: EM13375722

Questions Cloud

Choose and research an industry where there has been a : choose and research an industry where there has been a pattern of change in a particular market model monopoly

Assignment achoose one of the following assignment topics : assignment achoose one of the following assignment topics. answer each question 1 2 3 separately rather than answering

Each question carries ten marks there is a word limit on : each question carries ten marks. there is a word limit on each question of 500 words submissions exceeding this limit

Explain and show graphically how this market would be : explain and show graphically how this market would be affected if south africans chose to be more healthy?explain and

Part-1assume that country a has a population of 500000 and : part-1assume that country a has a population of 500000 and only produces one good-cars. country a produces 100000 cars

Explain the difference between demand pull inflation and : explain the difference between demand pull inflation and cost-push inflation illustrating your answer with examples of

Problem 11 gdp is 1200 consumption is 900 gross private : problem 11. gdp is 1200 consumption is 900 gross private domestic investment is 150 exports are 50 and imports are 125.

1 let the gdp of an island be y 5000 its consumption given : 1. let the gdp of an island be y 5000 its consumption given by the equation c 1200 frac34 y-t its investment i 1500

Question 11 a college stadium capacity is 7000nbsp if the : question 11. a college stadium capacity is 7000.nbsp if the school management wanted a full house for the coming home

User Account

All Pages