eco 201 questions 1

1. Provide the formula for the expenditure approach to GDP accounting and include an example of each category of spending.

2. Suppose a consumer buys 10 units of good X and 20 units of good Y every year. The following table lists the prices of goods X and Y in the years 2005-2007. Assume that these two goods constitute the typical market basket. Calculate the price indices for these years with 2005 as the base year. Comment on the inflation picture for these years.

Year	Good X	Good Y
2005	$3	$6
2006	4	7
2007	4.5	7.5

3. Using the expenditure approach, calculate GDP using the following data.

Item	Amount in dollars (billions)
Consumption	10,000
Consumption of Durable Goods	2,000
Consumption of Non Durable Goods	2,800
Consumption of Services	3,200
Investment	5,000
Fixed Investment	1,000
Government purchases of Goods & Services	3,000
Government Transfer Payments	450
Exports	1,850
Imports	2,000
GDP Equals

4. a. What is the importance of measuring per capita GDP?

b. Why nominal GDP can be misleading?

5. Do you believe that China is guilty of unfair trading practices including currency manipulation? no less than 350 words.

Do you need a similar assignment done for you from scratch? We have qualified writers to help you. We assure you an A+ quality paper that is free from plagiarism. Order now for an Amazing Discount!
Use Discount Code "Newclient" for a 15% Discount!

NB: We do not resell papers. Upon ordering, we do an original paper exclusively for you.