econ104 homework 2 - 1 The annual output and prices of a...

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1. The annual output and prices of a 3-good economy are shown in the table below.GoodPriceYear 1Quantity ofGoods Year 1PriceYear 2Quantity ofGoods Year 2Quarts of Ice Cream$64$66Bottles of Shampoo$52$53Jars of Peanut Butter$34$33What was GDP in year 1? $ 46 What was GDP in year 2? $ 60 2. Given the following data for a hypothetical economy in a given year:CategoryValuePersonal consumption expenditures$50 billionPurchases of stocks and bonds$30 billionNet exports$10 billionGovernment purchases$30 billionSales of secondhand items$8 billionGross investment$35 billionWhat is the country’s GDP for the year? $ 105
3. Assume that a grower of flower bulbs sells its annual output of bulbs to an Internet retailer for $80,000. The retailer, in turn, brings in $145,000 from selling the bulbs directly to final customers. What amount would these two transactions add to personal consumption expenditures and thus to GDP during the year?

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