Explain total dollar expenditure market basket total

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Unformatted text preview: 12 Y (a) (a) $120 $120 $12 $12 (d) (d) unemployed persons falls? Explain. Total dollar expenditure market basket Total dollar expenditure on market basket in current year = (e) (e) Doing the Math Total dollar expenditure market basket base Total dollar expenditure on market basket in base year = (f ) (f Do the calculations necessary to solve the following problems. 1. Using the following data, compute the GDP: consumption $3. 2 trillion; government purchases $1.2 trillion; export spending $1.9 trillion; import spending $1.8 trillion; and investment $1.5 trillion. 2. A tiny economy produces 10 units of good X and 15 units of good Y. Base-year prices for these goods are $1 and $2, respectively. Currentyear prices for these goods are $2 and $3. What is the CPI? 3. Using the data in question 2, what does real GDP equal? 4. In Exhibit 11-8, change the prices in column 2 to $14 for CDs and $6 for T-shirts. Change the prices in column 4 to $17 for CDs and $8 for T-shirts. Now calculate the CPI. 5. The CPI is 143 in ye...
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