GDP accounting

    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