ECON 210 phase 2 ip

ECON 210 phase 2 ip

I need 500 – 700 words
Assume that Country A has a population of 500,000 and only produces 1 good: cars. Country A produces 100,000 cars per year. The people in Country A purchase 90,000 cars, but there are not enough cars to fulfill all the demand. They decide to import 50,000 more. The government buys 25,000 cars for its police force, and 10,000 cars are bought by companies to transport employees to other locations to work. They also export 65,000 cars to nearby countries for sale. Discuss the following:
What is Country A’s GDP? What is the composition of GDP by percentage? What is the GDP per capita? How does this relate to Keynesian economics?
Part II
Go to the Bureau of Economic Analysis at this Web site, and look up the latest new release for real GDP. Address the following questions after reading the latest release:
Where is the United States in the business cycle? What is the real GDP today? What is the largest component of GDP? What is the smallest component of GDP? What is the fastest growing component of GDP, and why? What components of GDP were involved in the change from last month to this month? What is the price index today? What caused the change?
My answer so far: The formula for GDP = C + I + G + (X – M) C = 90,000 I = 10,000 G = 25,000 X = 65,000 M = 50,000 and Population is 500K 90K + 10K + 25K + (65K – 50K) = 125K + 15K = 140K Country A’s GDP = 140K Composition of GDP by percentage is: C/GDP = 64.2% IGDP = 7.1% G/GDP = 17.8% X/GDP = 46.4% M/GDP = 35.7% GDP per capita is GDP/Population 140K/500K = .28 Keynesian economics was developed during the Great Depression of the 1930s by a man named John Maynard Keynes. His view was based off of aggregate demand; which is the total spending of households, government, and businesses. There are three principles to Keynesian economics: economic decisions of public and private, prices and wages, anticipated or unanticipated changes in aggregate demand.

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