54You are employed by the state bureau of economic development. There is a demand fora leading economic index to review past economic activity and to forecast futureeconomic trends in the state. You decide that several key factors should be included inthe index: number of new businesses started during the year, number of businessfailures, state income tax receipts, college enrollment, and the state sales tax receipts.Here are the data for 2000 and 2018.New businessesBusiness failuresState income tax receipts ($ millions)College student enrollmentState sales tax ($ millions)Click here for the Excel Data File20001,0881627Leading economic indicator191.7242,119Economic activity has41.620181,162520162.6290,841The weights you assign are: new businesses 15%, business failures 10%, income tax40%, enrollment 10% and sales tax 25%.39.9b. Compute the leading economic indicator for 2018. (Round your answer to 2 decimalplaces.)c. Interpret the indexes. (Round your answer to 2 decimal places.)% between 2000 and the 2018.

Given,20002018New businesses1,0881,162Business failures627520State income tax…

Answered: b. Compute the leading economic…

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter5: Measuring A Nation's Income

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You are employed by the state bureau of economic development. There is a demand for a leading economic index to review past economic activity and to forecast future economic trends in the state. You decide that several key factors should be included in the index: number of new businesses started during the year, number of business failures, state income tax receipts, college enrollment, and the state sales tax receipts. Here are the data for 2000 and 2018. 2000 2018 New businesses 1,240 1,325 Business failures 600 496 State income tax receipts ($ millions) 185.2 220.8 College student enrollment 242,299 291,291 State sales tax ($ millions) 55.1 57.4 The weights you assign are: new businesses 15%, business failures 10%, income tax 42%, enrollment 13% and sales tax 20%. b. Compute the leading economic indicator for 2018. (Round your answer to 2 decimal places.) c. Interpret the indexes. (Round your answer to 2 decimal places.) Economic activity has (increased or decreased) _____%…
Muintiie oT 1st 3rd 2nd 4th Population Quintile's % of Income, Ecuador, 2000 Quintile's % of Income, Ecuador, 2010 Quintile's % of Income, United States, 2010 Sth 7 11 18 61 9. 12 21 54 10 14 20 51 United States data from the Congressional Budget Office at CBO.gov Before-tax income, rounded to whole s. Data for other countries from WorldBank.org, rounded to whole %s. Report your answers to two decimal places. According to these data, the Gini coefficient for Ecuador in 2000 is 0.48 The Gini coefficient for Ecuador in 2010 is 0.44 These Gini coefficients indicate that in Ecuador, the income distribution was in 2000 compared to 2010. In 2010, the income distribution was in the United States compared to Ecuador. 3.
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The table below gives the price and consumption (usage/sales) for two products xand yfor four years. Using year 2000 as the base year calculate for each year, thea) Basic expenditure index b) Laspeyers price index, and c) Paasche price index
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The four categories of income in the economy are: wages, rent, interest, profit O consumption, investment, government spending, net cxports O consumption, saving, taxcs, government spending O labor, land, capital. tcchnology
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B. Calculate the equiibrium level of income

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b. Compute the leading economic indicator for 2018. (Round your answer to 2 decimal places.) Leading economic indicator c. Interpret the indexes. (Round your answer to 2 decimal places.)