1. Suppose an economy has only two sectors, Goods and Ser- vices. Each year, Goods sells 80% of its output to Services and keeps the rest, while Services sells 70% of its output to Goods and retains the rest. Find equilibrium prices for the annual outputs of the Goods and Services sectors that make each sector's income match its expenditures. Goods Services .8 2 .3 .7
Q: Assume in a small island economy (without connection to other economies) just four goods are…
A: (a) Nominal GDP = Current year price * Current year quantity => Nominal GDP = (Current year price…
Q: Refer to the table. Equilibrium GDP is: Government Purchases Consumption (after taxes) $-20 Gross…
A:
Q: Production Prices Year 1 Year 2 Year 3 60 Year 1 $1.00 $0.60 Year 2 Year 3 Good X 50 Good Y 100…
A:
Q: Suppose in the economy of Richlandia the GDP in 2021 was $ 150 billion. Also, assume that gross…
A: Given: GDP=$ 150 billion Gross investments =$ 40 billion Personal consumption expenditure = $ 80…
Q: Refer to the Table below. Assume that this economy produces only two goods Good X and Good Y. The…
A: Nominal GDP is defined as the total production of all goods and services within territory of the…
Q: 9. Determine whether the following statement is correct or wrong: (a) “In 1933 net private domestic…
A: GDP refers to the value of goods and services produced in an economy over a given period of time.…
Q: Assume that a grower of flower bulbs sells its annual output of bulbs to an Internet retailer for…
A: Grower's income = $70,000 Retailer income = $140,000 - $70,000 Retailer income = $70,000 Personal…
Q: Consumption per period (trillions of dollars) $6 Consumption 3 1 2 3 4 5 6 7 8 9 10 Real GDP per…
A: The measure that depicts the value of goods and services that are being produced in an economy…
Q: Production Year1 Year 2 Year 3 Good X 50 50 60 Good Y 100 120 140 Select one: Assume that this…
A: Nominal GDP is that GDP which are calculated on current year price on the other Real GDP is that GDP…
Q: Refer to the information provided in Table 21.10 below to answer the question that follow. Table…
A: Nominal GDP is the GDP measured in the current year prices. Year 3: Q1=60 P1=$1.20 Q2=140 P2=$1…
Q: Production Prices Year1 Year 2 Year 3 Year 1 Year 2 Year Good X 50 50 60 $1.00 $1.20 $1.20 Good Y…
A: Year 2 GDP deflator = Year 2 Nominal GDP / Year 2 Nominal GDP * 100
Q: 4. Suppose you buy your uncle's childhood house for $300, 000 and rent it out to a friend for a…
A: Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: 1- In a country, if the consumption is OMR 14000, exports OMR 5300, government purchases are…
A: GDP The final monetary worth of products and services generated within a country over a given period…
Q: Which of the following statements are true? You may need to check public data. Select one or more: O…
A: The below data is issued by the customs of China for option C.
Q: Take as much of your time as you need and do it right. explain everything. Which of the following…
A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…
Q: Year 1 Year 2 50 Year 2 Year 3 $1.20 $1.20 Year 1 Year 3 60 $1.00 Cood X 50 Good Y 100 120 140 $0.60…
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: 3. To measure most accurately the standard of living within any given country at any given point in…
A: GDP or the Gross Domestic Product is the final value of goods and services produced within a country…
Q: Refer to the information provided in Table 6.4 below to answer the questions that follow. Table 6.4…
A: Given: Depreciation=40 Receipts of factor from rest of the world=30
Q: ne annual output and prices of a three-good economy are shown in the table BelOW. Quantity of Goods…
A: Answer to the question is as follows :
Q: Calculate the GDP under Expenditure approach, if Consumption is 2.9 billion, Investment is 1.3…
A: Gross Domestic Product(GDP) refers to the value of final goods and services produced in an economy…
Q: Refer to the table shown. What is the value of GDP using the expenditure approach? $4,785 350 235…
A: Meaning of Gross Domestic Product (GDP): The term gross domestic product refers to the situation…
Q: The following are a year's data for a hypothetical economy. Comsmption $400B, Government purchases…
A: a) Value of GDP: GDP = C+I+G+(X-M)GDP = $400+$150+$350+($150-$100)GDP = $950B Value of NDP: NDP =…
Q: .How is GDP computed by using production method? By Expenditure method? By Income method?
A: GDP is a broad measure of a country's economic activity that is used to estimate the size and growth…
Q: Instructions: Enter your answers as a whole number. If you are entering any negative numbers be sure…
A: GDP- It is the market value of goods and services produced with in the domestic territory of the…
Q: Why does GDP includes net exports instead of simply exports?
A: Since, you have posted multiple questions, we will solve the first one for you. If you want any…
Q: Refer to the information provided in Table 21.9 below to answer the question(s) that follow. Table…
A: The GDP deflator measures the price changes of all the goods and services produced within the…
Q: Refer to the table (all figures in billions of dollars). The disposable income (DI) for this…
A: Correct option is (a) $ 274 Disposable Income (DI) is $ 274 billion.
Q: 4- Assume that this economy produces only two goods Good X and Good Y. If year 1 is the base year,…
A: ( I am going to answer only 4,5,6 and 7 because it is stated by student.) Economy Real GDP in year…
Q: Using the following national income accounting data, compute (a) GDP, (b) NDP, and (c) NI. All…
A:
Q: Explain how China’s real GDP can grow at a 6.9 percent rate when consumption and investment grew…
A: GDP denotes the total aggregate output that is produced in the country at a given time period. It is…
Q: Use the following information to answer this question. If nominal GDP rises from $100…
A: Here, it is given that the nominal GDP changes from $100 trillion to $120 trillion, which implies…
Q: Q.1.3 In the base year, a country produced 50 units of output at a price of R6,00 each for a nominal…
A: Gross Domestic Product or the GDP of a country is the sum total or the accumulation of the final…
Q: Production Prices Year 2 $1.20 S0.60 Year 2 Year 1 X 50 Y 100 Year 3 60 Year 1 $1.00 $(,60 Year 3…
A: Nominal GDP measures value of goods and services using current level of prices whereas real GDP uses…
Q: 1. a. Write the components of GDP (from the table) according to the expenditure method. 1. b. By…
A: a. According to the Expenditure method, the components of GDP are : Consumption Investment…
Q: Suppose that in a closed economy GDP is $50,000, consumption is $35,000, taxes are 10,000 and…
A: Hello. Since your question has multiple parts, we will solve the first question for you. If you want…
Q: Assume the following information for an imaginary, closed economy. GDP = $120,000; consumption =…
A: The Gross Domestic Product of the country can be estimated by adding up the consumption,…
Q: Suppose an economy has only two sectors: Goods and Services. Each year, Goods sells 75% of its…
A: Let the price of the total annual output of the good be Pg Let the price of the total annual output…
Q: 3. Suppose an economy has two years worth of data, years 1 and 2. Sup- pose there are also two…
A: The following table shows the data given in the question:
Q: 5) In the following macroeconomic system, Y is GD? C is consumption, I. sknds for public investment,…
A: GDP is the gross domestic product of the country which includes consumption expenditure, investment,…
Q: In the expenditure approach, the total expenditures of the following entities are calculated, except…
A: Answer in step 2.
Q: Suppose in the economy of Richlandia the GDP in 2021 was $ 150 billion. Also, assume that gross…
A: "GDP measures the market value of all the final goods and services produced in an economy at a…
Q: Based on the following statistics, how much is consumption? Total spending Investment Government…
A: Consumption is the quantity of final commodities that residents are willing to purchase for meeting…
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- Consider a macroeconomy where the current population is 800 thousand people. Gross domestic private investment is constant $2500 million while consumer expenditure is described by the equation: C = 580 +0.8DI. The government is fairly active, with a total expenditure of $2000 million andnet taxes of $2550 million. Further investigation of the macroeconomy reveals that imports are constant at $3000 million while exports are constant at $2500 million. Currently, the overall price level (GDP deflator) is 118 and the potental GDP level is $13.5 billion.(Question4 of 7)Now, consider that the government decreases taxes by 7.5%. While the change had a direct impact on the economy, other market conditions led to an unanticipated change in the economy. Specifically, imports decrease by 7.5%. At the same time, given the birth rate, mortality rate, and net migration, the economy experienced a 0% change in its population.1. As a result of these events, what is the current equilibrium level of GDP?…An American retailer purchased 100 pairs of shoes from a company in Mexico in the second quarter of 2016 but does not sell them to a consumer until the third quarter of 2016. In which quarter(s) does(do) the value of the shoes add to U.S. GDP? O the third but not the second quarter O the second quarter but not the third quarter O the second and third quarters O neither the second nor the third quarter Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.4.Explain why tourism satellite accounts are useful and give examples for direct and indirect effects (two examples for each).
- Assume there are only two producing sector Y & Z in an economy. Calculatea) Gross value added at market price by each sector b) National income from the followings:Items Amount in CroresNet factor income from abroad- 20Sales by Y= 1000Sales by Z= 2000Change in stock of Z= -200C Closingstock of Y= 50 Opening stock of Y= 100Consumption of fixed capital by Y & Z= 180Indirect taxes paid by Y & Z= 120Purchase of raw material by Y= 500Purchase of raw material by Z= 600Exports by Z= 70Suppose an economy produces only 2 products that will also be used for directconsumption, as per the article at the end of the exam: chicken wings and donuts. Inthe second quarter of 2021 (the base period), 180,000 pounds of chicken wings wereproduced, at a value of $3.50 per pound, while in the second quarter of 2022,production of chicken wings increased to 200,000 pounds, at a value of $3.75 perpound. In the second quarter of 2021 (the base period), 85,000 donuts were producedat a value of $0.85 per donut, while in the second quarter of 2022, donut productionincreased to 100,000 donuts, each at a value of $0.95 per donut. The population inthis economy is 1000 individuals in 2022, while the number of hours worked in 2022is 5000. Also, the quantities that were produced in 2021 represent the quantities thatwere purchased by the typical household, meaning that everything that was producedwas sold.d. Solve for the amount of labor productivity in the second quarter of 2022.e. Solve for the…using the table below giving the quantity and price of goods producedin an economy in two periods in suitable units, assuming that there are only three goodsproduced in the economy. Consider the economy described above a) What is nominal GDP in 2003 and in 2004? By what percentage does nominalGDP change from 2003 to 2004?b) Using the prices for 2003 as the set of common prices, what is real GDP in 2003and in 2004? By what percentage does real GDP change from 2003 to 2004?c) Using the prices for 2004 as the set of common prices, what is real GDP in 2003and in 2004? By what percentage does real GDP change from 2003 to 2004?d) Why are the two output growth rates constructed in (b) and (c) different? Whichone is correct? Explain your answer.
- 10. When did the U.S. economy recover to the same GDP level just prior to the Covid-19 pandemic. (a) In the first quarter of 2021 before any of President Biden's policies were implemented. (b) Only after President Biden's policies were implemented in the second quarter of 2021 (c) Only in 2022. (d) We have still not reached the 2019 level of GDP.1. Consider the following data on Prices and Quantities of T-Shirts and Pajamas on the attached image. (i) Calculate the total value of goods and services at current prices in this economy eachyear?(i) Calculate the total value of goods and services at constant prices in this economy eachyear? (Note: GDP deflator for 2015 is 100) (ii). Whatisthe growth rate of RealGDP between 2016and 2017? (iv). What wasthe growth rate ofNominalGDP between 2016and 2017?(v) Was the growth rate of real GDP higher or lower that the growth rate of nominalGDP?Explain. (vi) Using 2015 asthe base year, calculate the CPI for each year. (vii). Calculate the inflation rate for 2015, 2016 and 2017.a) Let’s assume the real GDP of country Z is increasing. James concludes that now the citizens ofcountry Z can enjoy more goods and services. Why might his conclusion be wrong? Discuss indetail.b) The GDP of country A is higher than GDP of country B. Floyd concludes that the total incomeof the citizens of country A must be greater than country B. Why might his conclusion be wrong?When might his conclusion be correct?
- Consider a macroeconomy where the current population is 800 thousand people. Gross domestic private investment is constant $2500 million while consumer expenditure is described by the equation: C = 580+ 0.8DI. The government is fairly active, with a total expenditure of $2000 million and net taxes of $2550 million. Further investigation of the macroeconomy reveals that imports are constant at $3000 million while exports are constant at $2500 million. Currently, the overall price level (GDP deflator) is 118 and the potential GDP level is $13.5 billion. What is the current equilibrium level of real GDP? (report your answer at 2 decimal places and in millions of dollars) 1. What is the current equilibrium level of real GDP 2. what is the current real GDP per capita? 3. what is the value gap?1. a. Write the components of GDP (from the table) according to the expendituremethod. 1. b. By using the expenditure method, calculate GDP for years 2018 and 2019. 1. c. Explain “Changes in inventories”. If a demand shock occurs in the economy and thedemand falls drastically when prices are flexible, how would “Changes in inventories”account respond this? Why? Country Name Year Exports Consumption Investment Net Exports Government Expenditure Imports Cambodia 2018 61.315 75.209 23.341 -1.699 4.904 63.014 Cambodia 2019 67.209 81.655 26.660 -1.512 5.288 68.721The following are a year's data for a hypothetical economy. Comsmption $400B, Government purchases $350B, GDPI $150B, Exports $150B, Imports $100B, Depreciation $50B. a) what is the value of GDP and NDP? b) what is the value of Net private Domestic investment ? c) suppose that in the next year exports increases to $175B, imports increase to 200B, and consumption falls to 350B. What will GDP be in that year?
