Gm545 Week 1 Gdp

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Business Economics GM545 | March 2011 Online Session_C | | Chapter 15, Question 11. The table below lists gross domestic product (GDP), consumption (C), gross private domestic investment (I), government spending (G), and net exports (X – M). Compute each as a percent of GDP for the 5 years presented. Year | GDP | C | I | G | X – M | C (%) | I (%) | G (%) | X – M (%) | 1965 | 719.1 | 443.8 | 118.2 | 151.5 | 5.6 | 61.72% | 16.44% | 21.07% | 0.78% | 1975 | 1638.3 | 1034.4 | 230.2 | 357.7 | 16.0 | 63.14% | 14.05% | 21.83% | 0.98% | 1985 | 4220.3 | 2720.3 | 736.2 | 879.0 | -115.2 | 64.46% | 17.44% | 20.83% | -2.73% | 1995 | 7397.7 | 4975.8 | 1144.0 | 1369.2 | -91.4 | 67.26% | 15.46% | 18.51% | -1.24% | 2005 | 12455.8 | 8742.4 |…show more content…
Look for the smallest change from the year with the smallest contribution to GDP to the year with the largest contribution. (b.) Which is the most volatile as a percentage of GDP? (c.) Ignoring net exports, which component has grown the fastest as a percent of GDP since 1965? The gross domestic product (GDP) is a major indicator that we use to measure the health of our country's economy. It embodies the total dollar value of all goods and services produced over within a given period. GDP is measured by either using an income approach or an expenditure approach. The components of and salaries, corporate profits, proprietors income, farm income, rent, interest, sales taxes, and depreciation (National Income Accounting ). The expenditure components are as follows: consumption, investment, government spending, and net…show more content…
Using common sense is a first step which will help one survive hyperinflation. Be careful when buying bonds, high inflation rates completely destroy the value of long-term bonds. If you have a variable-rate mortgage, fix it if you can find a good deal, have a low fixed interest rate or 0% interest if you can find one. Invest in durable goods or commodities rather than in money. Although hyperinflation is hard to avoid, it seems that in 1985, Bolivia eliminated hyperinflation within a few months. Bolivia experienced between April 1984 and August 1985 the rather uncommon disgrace of hyperinflation. After those seventeen months they recovered by enacting the following measures: (1) they linked their currency to a stable foreign currency (in their case, the United States dollar) (2) they froze government spending (3) they stopped printing currency (4) they lifted all price controls, and (5) they deregulated their economy. (Morales,

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