This chart shows the components of nominal GDP for the years 2000 and 2001. All figures are in billions of current dollars.
Components 2000 2001
Consumption $6,684 $6,987
Investment $1,755 $1,560
Government Spending $1,751 $1,858
Exports $1,101 $1,034
Imports $1,467 $1,383
Nominal GDP $9,824 $10,056
1.3. Which of the following statements concerning the U.S. economy are totally (or unambiguously) supported by the data?
(i) The real output of goods and services increased in 2001 from 2000.
(ii) The United States ran a trade surplus in 2001.
(iii) Investment rose in 2001 from 2000, after accounting for inflation.which of the statements are supported by the data
A. i
B. ii
C. iii
D. i and ii
E. ii and iii
F. All of the
G. None of the above
To determine which statements are supported by the data, we need to analyze the information provided in the chart.
(i) The real output of goods and services increased in 2001 from 2000.
To determine if real output increased, we need to look at the nominal GDP values for the two years. In 2000, nominal GDP was $9,824 billion, and in 2001, it was $10,056 billion. Since the nominal GDP increased from 2000 to 2001, it suggests that the real output of goods and services also increased. Therefore, statement (i) is supported by the data.
(ii) The United States ran a trade surplus in 2001.
To determine if the United States ran a trade surplus, we need to compare the values of exports and imports for 2001. In 2001, exports were $1,034 billion, and imports were $1,383 billion. Since imports are higher than exports, it indicates that the United States had a trade deficit in 2001, not a trade surplus. Therefore, statement (ii) is not supported by the data.
(iii) Investment rose in 2001 from 2000, after accounting for inflation.
To determine if investment rose after accounting for inflation, we need to compare the values of investment for the two years. In 2000, investment was $1,755 billion, and in 2001, it was $1,560 billion. Since investment decreased from 2000 to 2001, it suggests that investment did not rise after accounting for inflation. Therefore, statement (iii) is not supported by the data.
Based on the analysis, the statement (i) is supported by the data. Therefore, the correct answer is A. i.