Exam 10: Measuring a Nations Income: Part A

A U.S.-owned automobile factory uses $50 million worth of materials produced in the U.S.and $10 million worth of material purchased from foreign countries to produce $100 million of automobiles.$70 million worth of these automobiles are purchased by U.S.consumers,$25 million are sold in foreign countries,and $5 million are added to inventory.How much of this production is included in U.S.GDP? By how much do these transactions alone affect U.S.net exports?

In 2010 a country had nominal GDP of 6 trillion euro and real GDP of 5 trillion euro.In 2011 it had nominal GDP of 6.5 trillion euro and real GDP of 5.2 trillion euro.What was its inflation rate in 2011? Show your work.

In 2012 a country had a real GDP $15.4 trillion and GDP deflator of 125.If that country's GDP deflator equals 115 in 2013,what is the rate of inflation in 2013?

Java Hut,a U.S.coffee retailer,buys $10 million worth of coffee beans from Colombia.It also pays $5 million for paper cups and utilities,all produced in the U.S.It sells the coffee it produces using the above inputs to U.S.consumers for $50 million.Overall how do these expenditure affect net exports? How do these expenditures effect U.S.consumption?