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Economic Theory

b) exports of goods and services plus the imports of goods and
services;
c) exports of goods and services divided by the imports of goods
and services;

d) imports of goods and services minus the exports of goods and
services.

Application Questions

1. In 2016 Ukraine had a GDP of approximately $93,270.48 million
and a population of 42.672 million. Ukraine’s GDP per person in 2016
was:

a) $2,185; b) $380; c) $1,413; d) $132.

2. If Government expenditure is $120 billion, Consumption is $400
billion, Business Investment is $60 billion, Export is $100 billion, Import

is $120 billion, what is the value of GDP?
a) $560 billion; b) $800 billion; c) $680 billion; d) $580 billion.

3. Use the table below to answer the following questions.
Consumption expenditures $200 billion
Government purchases $60 billion
Taxes $30 billion

Investment $50 billion
Social Security payments $20 billion

Imports $20 billion
Exports $10 billion
1) How much is GDP?
2) How much are Net Exports?

3) Should Social Security payments be included in GDP?

4. Consider the following data on U.S. GDP:

Year Nominal GDP (in billions) GDP deflator (base year 1992)
1996 7,662 110
1997 8,111 112

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