An economy produces 1,000,000 computers valued at $2,000 each. Households purchase 200,000 computers, of which 100,000 are imported. Businesses purchase 300,000 domestically produced computers, the government purchases 300,000 domestically produced computers, and 100,000 domestically produced computers are sold abroad. At the end of the year, the computer manufacturers hold the unsold computers in inventory. What is the value of GDP?
A. $3.8 billion
B. $2.0 billion
C. $1.8 billion
D. $1.0 billion
Answer: B
You might also like to view...
Use the following diagram to answer the next question.
Which of the following would cause a move from MS1 to MS2?
A. The banking system decides to hold less excess reserves and make more loans. B. The federal funds rate increases. C. The discount rate is increased by the regional Federal Reserve banks. D. The Federal Open Market Committee decides to sell bonds.
Build-Right Concrete Products produces specialty cement used in construction of highways. Build-Right is a price-setting firm and estimates the demand for its cement by the State Highway Department using a demand function in the nonlinear form:Q = aPbMc
where Q = yards of cement demanded monthly, P = the price of Build-Right's cement per yard, M = state tax revenues per capita, and PR = the price of asphalt per yard. The manager at Build-Right transforms the nonlinear relation into a linear relation for estimation. The estimation results are presented below: 
height="198" width="577" />Given the above, the estimated cross-price elasticity of demand for cement relative to the price of asphalt is A. 0.6 B. 0.3 C. 1.2 D. 3.0 E. none of the above
Briefly explain why people make choices
What will be an ideal response?
The government agency which has been given the task of calculating the Consumer Price Index (CPI) is
A. the Department of State. B. the Council of Economic Advisors. C. the Bureau of Labor Statistics. D. the Bureau of Economic Research.