1. A.) For the US, find the most current:
- Annual Real GDP
- Annual real GDP growth rates for the past 5 years
Cite the source used (Do not use Wikipedia). Make sure it is an official source of economic data. The Interactive NIPA tables in bea.gov (link below) can help http://www.bea.gov/iTable/iTable.cfm?ReqID=9&step=1#reqid=9&step=1&isuri=1
B.) From the growth rate data, what conclusions can you reach about the health of the US economy?
(e.g. what part of the business cycle are we currently in? (you will need chapter 12 for this part). Support your answer with rationale.)
2. In 5-6 sentences, use the framework of the circular flow to explain why total income equates to total spending at a macro level.
3. Using the data provided in the table below, find the GDP (show all work)
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$ (in billions)
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Corporate Profits
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305
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Capital Consumption Allowance (Depreciation)
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479
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Gross Private Domestic Investment
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716
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Personal Taxes
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565
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Personal Saving
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120
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Government Spending
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924
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Net Interest
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337
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Compensation of Employees
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2,648
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Imports
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547
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Rental Income
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19
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Exports
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427
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Personal Consumption Expenditures
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2,966
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Proprietors' Income
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328
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Indirect Business Taxes
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370
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Social Security Contributions (FICA)
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394
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Transfer Payments
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543
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4. Complete the table below and indicate which items are included in GDP and why.
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Activity
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Included (I) or Excluded (E) from GDP?
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Sale of a used car
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Excluded - resale
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My mom cooks a meal for the family
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Ford buys paint for its cars in production
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I purchased 100 shares of IBM stock.
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Joe receives an allowance from his father for mowing the lawn.
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Ms. Jones, a stock broker, receives commission when she sell stock for a client.
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Government buys a new fighter jet.
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You buy a used textbook.
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You go to the dentist.
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A retired worker receives a Social Security payment.
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Prof. Khoushab teaches an extra class at MCCC
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