Econ 200 Exam 4 Homework 1 Correct Questions And Answers!

The table below shows hypothetical values of nominal and real GDP for the United States between 2012 and 2016. Real GDP was computed using 2009 as the base year. Using the information in the table, compute the GDP price index for each year. {Ans: }The table below shows nominal GDP, exports, and imports for the United States. Nominal GDP, Exports, and Imports Year Nominal GDP Exports Imports 2015 $17,172.7 $2,344.0 $2,815.4 2016 $17,806.7 $2,372.7 $2,924.8 Calculate the value of net exports in 2015. $_______________ billion {Ans: -471.4 *NX = X - M; Net Exports (NX) = Exports (X) - Imports (M)}GDP stands for {Ans: Gross Domestic Product.}GDP cannot account for {Ans: intangibles, such as happiness.}Suppose an economy start the year with $200 million in capital, and during the course of a year it adds $42 million of gross investment. Economists estimate that the depreciation rate for this economy is 8% per year. Calculate depreciation and net investment for this economy. Depreciation: $___________ million Net Investment: $___________ million {Ans: 16: (200*8%) 26: (42 - 16)}The GDP _________ __________ can be used to track prices from year to year. {Ans: Price Index}