Marc 1 assignment

The Big Picture, Tracking the Macroeconomy 

General Instructions:

  1. Download your assignment template document from Course Documents. You will find this in the “Course Resources” module in the left navigation area which is located under your Digital Book. Select the “Load More” button at the bottom of the list to view all the available documents. Look for the document entitled: Unit 1 Assignment Template
  2. Unless specified differently by your course instructor, save this assignment template to your computer with the following file naming format: Course number_section number_last name_first name_unit number
  3. At the top of the template, insert the appropriate information: Your name, course number and section, and the date
  4. Insert your answers in the appropriate space provided for the question. Your answers should:
    1. follow current APA format with citations to your sources,
    2. include a list of references at the bottom of your last page,
    3. be in Standard English with correct spelling, punctuation, grammar, and style,
    4. be double-spaced,
    5. be formatted in Times New Roman,12-point, black font, and
    6. respond to questions in a thorough manner, providing specific examples of concepts, topics, definitions, and other elements asked for in the questions.

Assignment:

This assignment addresses how economists measure various nations’ economies using measures such as Gross Domestic Product (GDP). In doing so, it highlights the various components of the GDP, the difference between nominal and real GDP, and the limitations of the GDP as a measure of national income

UNIT 1 – BU204 – MACROECONOMICS 1

Unit 1 Assignment Template: The Big Picture, Tracking the Macroeconomy

 

Name: ______________

BU204 – Section: _____

Date: ______________

 

General Instructions for all Assignments

 

1. Unless specified differently by your course instructor, save this assignment template to your computer with the following file naming format:

Course number_section number_Last name_First name_Unit number.

Example: BU204_Section02_David_Alex_Unit1

 

2. At the top of the template, insert: Your Name, Course Number and Section (BU204 – Section 0x), and the Date.

 

3. Insert your answers below each question or in the appropriate space provided for in the question. Respond to questions in a thorough manner, providing specific examples of concepts, topics, definitions, and other elements asked for in the questions.

 

4. Your answers should

a. follow current APA format with citations to your sources,

b. include a list of references at the bottom of your last page,

c. be in Standard English with correct spelling, punctuation, grammar, and style,

d. be double-spaced,

e. be formatted in Times New Roman,12-point, black font, and

f. respond to questions in a thorough manner, providing specific examples of concepts, topics, definitions, and other elements asked for in the questions.

 

5. Upload the completed assignment to the appropriate unit Dropbox.

 

6. Direct any questions about the assignment to your course instructor.

 

Assignment

This assignment addresses how economists measure various nations’ economies using measures such as Gross Domestic Product (GDP). In doing so, it highlights the various components of the GDP, the difference between nominal and real GDP, and the limitations of the GDP as a measure of national income.

 

1) U.S. real GDP is substantially higher today than it was 60 years ago. What does this tell you, and what does it not tell you, about the well-being of U.S. residents? What are the limitations of the GDP as a measure of economic well-being? Given the limitations, why is GDP usually regarded as the best single measure of a society’s economic well-being?

(Enter response here.)

 

2) What is an intermediate good? How does an intermediate good differ from a final good? Explain why the value of intermediate goods produced and sold during the year is not included directly as part of GDP. Explain why the value of intermediate goods produced and not sold is included directly as part of GDP.

(Enter response here.)

 

3) GDP is defined as the market value of all final goods and services produced within a country in a given period of time. As we covered in the previous question, intermediate goods are not included in GDP. However, that is not the only production that is left out of GDP. Explain why some final goods and services, other than intermediate goods, are not included in GDP.

(Enter response here.)

 

4) The table below contains hypothetical data for country A for a given year.

Country A’s Goods and Services Total
Household purchases of durable goods $1293
Household purchases of nondurable goods $1717
Household purchases of services $301
Household purchases of new housing $704
Purchases of capital equipment $310
Inventory changes $374
Purchases of new structures $611
Depreciation $117
Salaries of government workers $1422
Government expenditures on public works $553
Transfer payments $777
Foreign purchases of domestically produced goods $88
Domestic purchases of foreign goods $120

 

Refer to the Table above to answer the following questions. Be sure to show all of your calculations.

a. What was country A’s GDP?

 

(Enter response here.)

 

b. What was country A’s consumption?

 

(Enter response here.)

 

c. What was country A’s investment?

 

(Enter response here.)

 

d. What were country A’s government purchases?

 

(Enter response here.)

 

e. What were country A’s exports and imports? What was the net export?

 

(Enter response here.)

5) Calculate how much each of the following items is worth in terms of today’s dollars using 180 as the price index for today.

 

a. In 1925, the CPI was 18 and the price of a movie ticket was $0.30.

 

(Enter response here.)

 

b. In 1930, the CPI was 14 and a cook earned $20 a week.

 

(Enter response here.)

 

c. In 1940, the CPI was 16 and a gallon of gas cost $0.20.

 

(Enter response here.)

 

———————-

References:

Author. (Date.) Title. Source.

 

Directions for Submitting Your Assignment

Before you submit your assignment, you should save your work on your computer and use the correct filename that is specified in item 1 of the General Instructions for all assignments. When you are ready, submit to the Unit 1 Assignment Dropbox.

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