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Vilka [71]
3 years ago
5

The following are national income account data for a hypothetical economy in billions of dollars: government purchases ($1,050);

personal consumption expenditures ($4,800); imports ($370); exports ($240); gross private domestic investment ($1,130). Personal consumption expenditures are approximately what percentage of this economy?
Business
1 answer:
zimovet [89]3 years ago
3 0

Answer:

Percentage of Personal consumption expenditures is 70.07%

Explanation:

The most common way to measure the national income account is gross domestic product (GDP)

GDP = C + I + G + (X – M) or

GDP = private consumption + gross investment + government investment + government spending + (exports – imports).

government purchases ($1,050) is government spending

personal consumption expenditures ($4,800) is private consumption

imports ($370)

exports ($240)

gross private domestic investment ($1,130) is gross investment

GDP = $1,050 +$4,800+$1,130+$240-$370=6.850

Personal consumption expenditures proportion  is $4,800/6.850=0,7007

in %= 70.07%

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The above-mentioned question is missing few components. I have added them to explain on how the question would be solved if all the variables were provided. Please note the additions in bold text below. The answer of which is given afterwards.

You own 300 shares of Somner​ Resources' preferred​ stock, which currently sells for $39 per share and pays annual dividends of ​$5.50 per share. If the​ market's required yield on similar shares 12% is ​percent, should you sell your shares or buy​ more?

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