An Economy Produces 1,000,000 Computers Valued at $2,000 Each

question 20

Multiple Choice

An economy produces 1,000,000 computers valued at $2,000 each.Households purchase 200,000 computers,of which 100,000 are imported.Businesses purchase 300,000 domestically-produced computers.The government purchases 300,000 domestically-produced computers,and 100,000 domestically-produced computers are sold abroad.The unsold computers at the end of the year are held in inventory by the computer manufacturers.What is the value of the private-sector investment component of GDP?

• A) $0.5 billion.
• B) $0.6 billion.
• C) $0.8 billion.
• D) $0.9 billion.
• E) $1.0 billion.

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Definitions:

Time Series

A sequence of data points typically measured and recorded at uniform time intervals.

Intensity

The quality of being intense; often used to describe the strength or magnitude of a variable or phenomenon.

Centered Moving Average

A method used in time series analysis to smooth out short-term fluctuations and highlight longer-term trends or cycles by averaging data points centered around a point.

Liquor Sales

The total volume or financial value of alcoholic beverages sold over a specific time period, often used as an economic indicator.