Homework 1-
1. a. Using Excel replicate the following table and then calculate the missing cell values using an Excel formula (this is obviously simple to do by hand, but the point is to start with an easy assignment with excel and build your skills). The following table is based on the Survey of Current Business (August 2000). Note all numbers for Nominal GDP, consumption, gross investment, government purchases of goods and services, and net exports are in billions of current dollars.
|
Year
|
Nominal GDP
|
Consumption
|
Gross Investment
|
Government Purchases of Goods and Services
|
Net Exports
|
|
1929
|
|
77.5
|
16.7
|
9.4
|
0.4
|
|
1933
|
56.4
|
45.9
|
|
8.7
|
0.1
|
|
1939
|
92.0
|
67.2
|
9.3
|
14.7
|
|
|
1945
|
223.0
|
119.8
|
10.8
|
|
-0.9
|
|
1980
|
2795.6
|
1762.9
|
477.9
|
569.7
|
|
|
1990
|
|
3831.5
|
861.7
|
1181.4
|
-71.4
|
|
1999
|
9299.2
|
|
1650.1
|
1634.4
|
-254.0
|
Now using an Excel spreadsheet, calculate the following: (for your answers provide your Excel spreadsheet with the calculated values: please make sure the columns are clearly identified)
b. Consumption each year as a percent of nominal GDP for that year
c. Gross Investment each year as a percent of nominal GDP for that year
d. Government Purchases of Goods and Services each year as a percent of nominal GDP for that year
e. Net Exports each year as a percent of nominal GDP for that year
2. You are given the following information about the U.S. economy in 1999 (all numbers are in billions of 1999 dollars and are taken from the Survey of Current Business (August 2000)). Gross Domestic Product equals $9299.2; Gross National Product equals $9288.2; earnings in the United States by foreign residents and firms equals $316.9; Net National Product equals $8127.2; Indirect Business Taxes equals $657.5; Corporate Profits equals $856.0; Proprietors' Income equals $663.5; Rental Income of Persons equals $143.4; Net Interest equals $507.0; Corporate Profits equals $485.7 (assume this figure accounts for all dividend transactions, and includes retained earnings); Contributions to Social Security equals $667.2; Personal Interest Income equals $456.6; Personal Taxes equals $1152.0; and Personal Disposable Income equals 6637.6.
a. What is the value of foreign earnings of U.S. residents and firms in 1999?
b. What is the value of depreciation in the U.S. economy in 1999?
c. What is the value of National Income in the U.S. economy in 1999?
d. What is the value of Compensation of Employees in the U.S. economy in 1999?
e. What is the value of Transfer Payments to Persons in the U.S. economy in 1999? (Assume that net interest has already been accounted for in the above figures.)
f. What is Personal Income in the U.S. economy in 1999?
3. a. Calculate the missing values for the following table:
|
Year
|
Nominal GDP (Billions of Current Dollars
|
Real GDP (Billions of 1996 Dollars)
|
Implicit GDP deflator
|
|
1960
|
527.4
|
|
22.2
|
|
1970
|
|
3572.8
|
29.1
|
|
1980
|
2795.6
|
4904.6
|
|
|
1990
|
5803.2
|
6708.9
|
|
|
1999
|
|
8875.8
|
104.8
|
b. Now using the values you calculated in (a), calculate the percentage change in nominal GDP and the percentage change in real GDP for 1960-1970, 1970-1980, 1980-1990, and 1990-1999. Use Excel to make these calculations and provide your answer in a well labeled excel spreadsheet.
c. Now provide an interpretation of the results you got in part (b).