Question

Table 8-1

Employee compensation $800

Rents 90

Government spending 150

Depreciation 200

Gross private investment 445

Personal income taxes 140

Net exports 75

Personal consumption 520

Interest income 100

16. Given the information in Table 8-1, the GDP equals

a. $1,190.

b. $1,330.

c. $1,650.

d. $2,670.

1. 17. The CPI was 238 in one year and 244 the following year. How much did prices rise between these two

years?

a. 2.46 percent

b. 5.50 percent

c. 2.52 percent

d. 0.03 percent

3. 18. Suppose the market basket consists of 100X, 200Y, and 300Z. Current-year prices are $5 for each unit of X,

$2 for each unit of Y, and $3 for each unit of Z. Base-year prices are $2 for each unit of X, Y, and Z. What is the

approximate CPI in the current year?

a. 15

b. 70.20

c. 1,200

d. 150

Answer 1

Through Expenditur Approach Yo Calt at Nx - 520+ uurt 150+ 75 GDPMP GDPm p= 590t 600=1190 Aus is A x100 (17 pinPrice =AUPT Intel CPI = 244-238 100 loo 2.5910084 6 Aus is ça Base Year Exp = 100 (2) +200/2) + 300/2) = 20 +400+600=120 Basa too Curent Yeon Exp = 100(5) + 200/2) +2000 sootyoo +90o=1300 CI- 18OOL x 100 = 150 1200 Ans is D