Take Home Examination Macroeconomics By Alex Prindle

Take Home Examination 1 Macroeconomics by Alex Prindle 1. (10 points) What will be the expected changes to GDP in the next year? Explain by giving details about the impacts, if any, on C, I, G, and NX. Discuss the impact on real GDP vs. nominal GDP. The GDP should go up overall. The area of consumption should increase overall GDP, because when there are more jobs available and there is a great amount of job growth, more people will consume durable and non-durable goods. It states in the second article that 30,000 jobs have been added to San Diego county since 2012, so according to this article, consumption will increase as people have more jobs and are making more money. Also, it states in the article that more people are spending increasingly more money on housing and this impacts the GDP by making consumption increase. People have also been increasingly staying in apartments after their education or as young adults and are not moving out into single-family homes in the suburbs. As a result of this now 37% of housing is made up of rente rs. Rent is included in a calculation for consumption as people continue to spend more money on housing than daily necessities for life. As far as investments are concerned, craft beer in San Diego as an industry grew from 300 million US dollars in 2012 to 600 million dollars in 2016, a remarkable increase that can only show that San Diego’s GDP is growing, and I believe the US’s GDP is continually increasing as it is following the same