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Posted: March 8th, 2022
Wk 4
Question description
Wk 4 - Critical Analysis Questions
Chapters 1 & 2
Answer and submit using APA format the
following Critical Analysis Questions:
Chapter 7: Questions 6, 15
Chapter 8: Questions 5, 9, 15
6. What
are price indexes designed to measure?
Outline how they are constructed.
When GDP and other income figures are compared across time periods,
explain why it is important to adjust for changes in the general level of
prices.
15. The accompanying chart presents 2010 data
from the national-income accounts of the United States.
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Component
Billions of Dollars
Personal consumption
$ 10,245.5
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Employee compensation
7,971.4
Rents
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350.2
Gov’t consumption & investment
3,002.8
Imports
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2,356.7
Depreciation
1,876.6
Corporate profits
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1,800.1
Interest income
564.3
Exports
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1,839.8
Gross private investment
1,795.1
Indirect business taxes
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1,117.7
Self-employment income
1,036.4
Net income of foreigners
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-189.4
a. Indicate the various components of GDP when
it is derived by the expenditure approach.
Calculate GDP using the expenditure approach.
b. Indicate the various components of GDP when
it is derived by the resource cost-income approach. Calculate GDP using the resource cost-income
approach.
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