Economics Homework Help

1. Provide the formula for the expenditure approach to GDP accounting and include an example of each category of spending.

2. Using the expenditure approach, calculate GDP using the following data.

Item	Amount in dollars (billions)
Total Consumption	8,000
Consumption of Durable Goods	2,000
Consumption of Non Durable Goods	2,800
Consumption of Services	3,200
Total Investment	5,000
Fixed Investment	1,000
Government purchases of Goods & Services	3,000
Government Transfer Payments	450
Exports	1,000
Imports	2,000
GDP Equals

3. a. What is the importance of measuring per capita GDP?

b. Why nominal GDP can be misleading?

4.Explain how GDP can be calculated using the income approach.