4. Exhibit: Totals Recorded for the United States
Durable goods consumption 497
Non-durable goods
consumption 1,301
Services consumption 2,342
Business fixed investment 566
Residential fixed investment 224
Inventory investment 7
Federal government
purchases 449
State and local government
purchases 683
Exports 640
Imports 670
Excess of GNP over GDP 7
Depreciation 658
Indirect business taxes 551
Corporate profits (includes
wage accruals less
disbursements)
387
Social insurance
contributions 556
Net interest 442
Dividends (includes business
transfer payments) 162
Government transfers to
individuals 837
Personal interest income 694
Personal tax and nontax
payments 645
In the exhibit above, what were GDP, consumption expenditures, investment
expenditures, government purchases, and net exports?
5. Exhibit: Quantity Consumed and Price of Good
Base Year Later Year
Price of good A 100 200
Quantity of good A 100 200
Price of good B 100 100
Quantity of good B 100 100
In the exhibit, the citizens of country XYZ come to desire more of good A. As a result, the
quantity and price of
the good both rise.
a. Compute nominal GDP in the base year and later year.
b. Compute real GDP in the base year and later year.
c. Compute the GDP deflator in the later year, using your answers to parts (a) and (b).