1. a. Write the components of GDP (from the table) according to the expenditure method. 1. b. By using the expenditure method, calculate GDP for years 2018 and 2019. 1. c. Explain “Changes in inventories”. If a demand shock occurs in the economy and the demand falls drastically when prices are flexible, how would “Changes in inventories” account respond this? Why? Country Name Year Exports Consumption Investment Net Exports Government Expenditure Imports Cambodia 2018 61.315 75.209 23.341 -1.699 4.904 63.014 Cambodia 2019 67.209 81.655 26.660 -1.512 5.288 68.721
1. a. Write the components of GDP (from the table) according to the expenditure method. 1. b. By using the expenditure method, calculate GDP for years 2018 and 2019. 1. c. Explain “Changes in inventories”. If a demand shock occurs in the economy and the demand falls drastically when prices are flexible, how would “Changes in inventories” account respond this? Why? Country Name Year Exports Consumption Investment Net Exports Government Expenditure Imports Cambodia 2018 61.315 75.209 23.341 -1.699 4.904 63.014 Cambodia 2019 67.209 81.655 26.660 -1.512 5.288 68.721
Chapter19: Measuring Economic Performance
Section: Chapter Questions
Problem 7P
Related questions
Question
1. a. Write the components of
method.
1. b. By using the expenditure method, calculate GDP for years 2018 and 2019.
1. c. Explain “Changes in inventories”. If a demand shock occurs in the economy and the
demand falls drastically when prices are flexible, how would “Changes in inventories”
account respond this? Why?
Country Name | Year | Exports | Consumption | Investment | Net Exports | Government Expenditure | Imports | ||
Cambodia | 2018 | 61.315 | 75.209 | 23.341 | -1.699 | 4.904 | 63.014 | ||
Cambodia | 2019 | 67.209 | 81.655 | 26.660 | -1.512 | 5.288 | 68.721 | ||
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