GDP Practice Problems
1. Which of the items will be counted in GDP?
a. Rental Income
b. The Total Value of a Newly Build Home
c. Interest Payment on Debt
d. Purchases of Used Goods
e. Transfer Payments such as Welfare Checks, Social Security Payments, Food Stamps, etc...
f. Purchase of New Goods
g. Intermediate Goods
h. The Construction Costs of Building New Homes and Facilities
i. Payment of Services such as legal, education, healthcare, etc...
2.
Calculate GDP; Given the following information: Remember Y=C+I+G+NX
$ 900,000 Exports
$ $23,500 Depreciation Expense
$ 5000 Food Purchase
$ 1,300 Mortgage Payment
$ 100,000 Construction Costs of New Apartments
$ 1,000,000 Imports
$ 78,000 New Business Inventory Change
$ 40,000 New Military Missiles Purchased
$ 1,000,000 Construction Costs of Newly Built US Highway
$ 670 Lease Value on a new vehicle purchase
$ 200,000 Used Warehouse Purchase
$ 6,000,000 Govt. Tax Collection
$50,000 Social Security Checks
$4,500 Legal Fees
Determine Which items are durable, non-durable & services
Determine Whether we have a Budget Deficit, Surplus, or Balance Budget
Determine Whether we have a Trade Deficit, Surplus, or Balance of Trade
3.
Calculate GDP; Given the following information: Remember Y=C+I+G+NX
$700 Massage Therapy Services
$10,000,000 Value of a New Football Stadium
$90,000 Used Business Inventory
$500,000 Tax Collections
$400,000 Exports
$230 Food Purchased
$1,770 New washer & Dryer Purchased
$13,000,000 Construction costs of a New Baseball Stadium
$60,000 Value on a New Manufactured Home Finished and Shipped
$900,000 New Military Uniforms
$39,000,000 Food Stamps
$390,000 Imports
$95,000 Depreciation Expense
Determine Which items are durable, non-durable & services
Determine Whether we have a Budget Deficit, Surplus, or Balance Budget
Determine Whether we have a Trade Deficit, Surplus, or Balance of Trade