Problem 2 Compensation of employees US exports of goods and

Problem #2 Compensation of employees US exports of goods and services Consumption of fixed capital (depreciation) Government purchases Taxes on production and imports Gross private domestic investment Transfer payments US imports of goods and services Personal taxes Net foreign factor income Personal consumption expenditures Statistical discrepancy $194.2 17.8 11.8 59.4 14.4 63.9 13.9 16.5 40.5 2.2 219.1 Using the table above, calculate Gross Domestic Product using the expenditures approach. GDP Problem #3 Fill in the blanks on this table: Price level index 25.6 Real GDP billions Nominal GDP Year 1959 1964 1967 1973 1978 1988 1991 billions) 494.2 648.0 814.3 1,349.6 2,232.7 4,900.4 5,724.8 2,339.4 30.3 41.3 3,702.7 4,716.5

Solution

SOLUTION:#2 GDP: 343.7

Working:

Personal consumption expenditures	219.1
Govt purchases	59.4
Gross private domestic investment	63.9
Net exports (17.8-16.5)	1.3
GDP	343.7