The US consumer expenditure in durable goods decreased by 12%. In the US, the prices of oil quadrupled. In the UK, The US dollar appreciated by 12%. China is an important US trade partner. China's income quadrupled in the past 10 years, increasing the demand of many US products. At the same time, the Dow Jones Industrial Average (DJIA) increased by 12.5% over the past two quarters. The effect of these events on the US economy is: show the final effects on your graph). The expenditure of durable goods in the US decreased by 14% in 2018. At the same time, minimum. wage increased from $7.25 to $9 per hour, increasing production costs in the manufacturing industr

The US consumer expenditure in durable goods decreased by 12%. In the US, the prices of oil quadrupled. In the UK, The US dollar appreciated by 12%. China is an important US trade partner. China's income quadrupled in the past 10 years, increasing the demand of many US products. At the same time, the Dow Jones Industrial Average (DJIA) increased by 12.5% over the past two quarters. The effect of these events on the US economy is: show the final effects on your graph). The expenditure of durable goods in the US decreased by 14% in 2018. At the same time, minimum. wage increased from $7.25 to $9 per hour, increasing production costs in the manufacturing industr

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter25: The Keynesian Perspective

Section: Chapter Questions

Problem 17CTQ: In its recent report, The Conference Boards Global Economic Outlook 2015, updated November 2014...

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The table below shows nominal GDP, exports, and imports for the United States. Nominal GDP, Exports, and Imports Year 2015 2016 Nominal GDP Exports Imports (billions of (billions of (billions of dollars) $2,308.0 2,334.1 LA dollars) $16,981.9 17,601.1 Instructions: Round your answers to one decimal place. If you are entering a negative number include a minus sign. a. Calculate the value of net exports in 2015. billion b. Calculate the value of net exports in 2016. billion dollars) $2,759.7 2,878.3
Price level increasing, causing a movement along the aggregate demand curve, can be explained by: the real value of savings increases. an increase in investment and consumption expenditure. a decrease in interest rates. a decrease in net exports. *Answ: a decrease in net exports. Reason: (As a result of the foreign-purchases effect, an increase in the price level causes the quantity of exports to decrease and the quantity of imports to increases, which means net exports decreases and the aggregate quantity of real GDP demanded decreases.) Explanin in detailstep by step using exaple and graph
If US exports increased and imports remained constant, this would... O No change in GDP Decrease GDP Increase Net Exports Increase Government Purchases
Exports and Imports 800 700 600- 500- 400 300 1 200 100 1970 1980 1990 Year Exports Imports 2000 Figure 5.3 Exports and Imports in the Country of Macroland According to the economy in Figure 5.3, net exports Did not impact GDP from 1990 to 2000 because exports were greater than imports. Were a negative number from 1970 to 1985. Made a positive contribution to GDP from 1970 to 1985. O Were a negative number from 1990 to 2000.
2. Exports, imports, and Net exports
Consider the following table showing the breakdown of GDP (in billions) for China. GDP Category Amount (in billions) Wages and Salaries 1000Consumption 1700Investment 700Depreciation 50Government Expenditure100Taxes 300Exports 50Imports 40Income receipts from rest of the world10Income payment to rest of the world50 What are net exports for China? 4. Suppose that GDP in Japan is 1030 and then grows to 1160 (all numbers in billions)What is the growth rate of GDP in Japan?Use the following information to answer questions 5 through 15: The tables below show data on prices and quantities of Oranges and Shoes produced in China. Data for 2014Price of Oranges Quantity of Oranges Price of Shoes Quantity of Shoes0.7 200 10 270Data for 2015Price of Oranges Quantity of Oranges Price of Shoes Quantity of Shoes0.9 150 14 250Data for 2016Price of Oranges Quantity of Oranges Price of Shoes Quantity of Shoes1.4 300 15 3305. Given this data, what is the Nominal GDP in 2014?6. What is the Nominal GDP in…
Consider an economy that produces wood, boats, and has a marketing agency.This year domestic wood production generates revenues of $80. Of this $80 worth of wood, $40were purchased by the boat producer and $40 were sold abroad to a foreign company. The woodproducer paid $40 worth of wages and $10 worth of taxes.The boat producer combines the services of the marketing agency, the wood it purchased from thewood producer, and $20 worth of labor (wages) to produce $120 worth of boats. Its revenues,which include a boat produced in the previous year and that was carried as inventory, are $130.Domestic families buy all these boats. This company pays $10 worth of taxes.The marketing agency, whose sole client is the boat company, generates a revenue of $40 whichis enough to cover its labor costs of $40. This company pays no taxes.The government in this economy uses the $20 worth of taxes and builds a port. The cost of theport is $40 that are paid to workers. This port is partially financed by…
The United States exports 14 of GDP while Germany exports about 50 of its GDP. Explain stat that means.
In its recent report, The Conference Boards Global Economic Outlook 2015, updated November 2014 (http://www.conference-board.org/data/ globaloutlook.cfm), projects Chinas growth between 2015 and 2019 to be about 5.5%. International Business Times (http//www.ibtimes.com/us-exports-china-have rown-294-over-past-decade- 1338693) reports that China is the United States third largest export market, with exports to China growing 294 over the last ten years. Explain what impact China has on the U.S. economy.
Define net exports. Explain how U.S. exports and imports each affect domestic production. Suppose foreigners spend $7 billion on U.S. exports in a specifific year and Americans spend $5 billion on imports from abroad in the same year. What is the amount of the United States’ net exports? Explain how net exports might be a negative amount.
Alada Belam Canson Country GDP $10,000 $20,000 $ Tij = 0.001 × [(Y₁ × Yj) / D¡j] Distance from: Alada 100 km 250 km Distance from: Belam If the trade volume between Alada and Canson equals to the trade volume between Alada and Belam, what is the expected GDP for Canson? a. 50,000 b. 25,000 c. 100,000 d. 40,000 100 km 100 km
What is the predicted relationship between the value of a country’s imports and its national income? What is the predicted relationship between its trade balance and its national income? Plz do fast .