Econ 2 Homework 4/9/08

Econ 2 Homework 4/9/08 - +600 Exports +75 Government...

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Heather Wilson-White Econ 2 Homework Chap. 5, #2-6 4/9/08 2. a) increase GDP b) GDP remains constant c) increase GDP d) GDP remains constant e) GDP decreases 3. GDP= $200+$5000+($80,000-$2,000-$5,000) + ($100,000-$80,000) = $100,000. Yes, it would be the same if just counted final profits. 4. a) GDP increases, consumption increases, other components constant b) GDP decreases, net exports decrease, all other components constant c) GDP increases, investment increases, others constant d) GDP decreases, net exports decrease, others constant 5. Consumer expenditures = consumption
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Unformatted text preview: +600 Exports +75 Government purchases +200 Construction of new homes & apartments = investment +100 Sales of existing homes… Doesn’t apply to GDP Imports-50 Increase in stocks = 125-100 = investment +25 Business fixed investment = investment +100 Government payment to retirees Doesn’t apply to GDP Household purchases of durable goods Already accounted for in category of total consumer expenditures TOTAL GDP $1050 6. Real GDP Nominal GDP 2000 $8,500 $8,500 2007 $7,825 $8,625...
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This note was uploaded on 04/10/2008 for the course ECON 2 taught by Professor Rupert during the Spring '08 term at UCSB.

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