1.1Definition of GDP and explanation of why this is equal to national income (an explanation of how expenditure apptoach and income approach to GDP are related)

Q: Suppose, at the beginning of the year, there are ten cranes in the economy. During the course of the…

A: Gross investment is the monetary value of the asset or business in which a company has invested…

Q: Define net exports. Explain how U.S. exports and imports each affect domestic production. Suppose…

A: International trade is defined as the purchase or sale of commodities, services, and other assets…

Q: 4. Measuring GDP The following table shows data on consumption, investments, exports, imports, and…

A: The net export of Goods and Services means the country's total export minus total import. That is,…

Q: 1 a)What is the value added definition of GDP? What is meant by value added? b) Suppose that in a…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: $50,000 on food and other consumption goods, $20,000 on vacations abroad, saved $10,000 in her…

A: In economic aspects, (GDP) is how much a spot produces in a measure of time. Gross domestic product…

Q: Q no: 17 Explain the approach (expenditure or income) that you used to calculate GDP? Use the…

A: Gross domestic product is the market value of all goods and services produced in the economy in a…

Q: Calculate the net domestic product (NDP),

A: NDP (Net Domestic Product): It refers to the measurement of the economics output. It is the account…

Q: 3. Which of the following is not included in investment expenditure? a) changes in business…

A: 13)Purchasing would mean investment. Change in business inventories would not be included under…

Q: 4. What are the two different ways of looking at GDP? The (or output) approach adds up all the…

A: National income describes the total value addition, income generation, or expenditure made on…

Q: • Personal ineome= If you have the following data that representing an economy of a country as…

A: 1. a) GDP: GDP or gross domestic product is the measurement of the final value of all the goods and…

Q: 1. Using the information in the table below, sort each value into the expenditure categories - C, I,…

A: We have to derive total GDP by using given information .

Q: Suppose that an economy consists of only two individuals. Trevor has $1870 available to spend on…

A: The gross domestic product(GDP) of an economy is defined as the amount of final commodities(goods…

Q: 2. From the following transactions find out NNP. () Household expenditure on consumption (11)…

A: Given values: Household expenditure on consumption = 100000 Government expenditure on consumption =…

Q: If Mercedes builds cars in the United States, is their value counted in U.S. GNP? If General Motors…

A: GDP refers to the monetary value of goods and services produced in the county in a particular period…

Q: The following are national Income account data for a hypothetical economy In billions of dollars:…

A: Answer to the question is as follows:

Q: 1. How do we know that calculating GDP by the expenditure approach yields the same answer as…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Elucidate how an economy’s income must always equal its expenditure.

A: Elucidate how an economy’s income must always equal its expenditure. There are two national income…

Q: 6. Limitations of GDP Although GDP is a reasonably good measure of a nation's output, it does not…

A: GDP(Gross Domestic Product) is the monetary value of all finished goods and services that have been…

Q: Explain any two items which are included in the expenditure method of national income?

A: According to the given question According to the expenditure method the national income is basically…

Q: What is the formula for measurement on the demand side of GDP? Include a brief definition of each of…

A: GDP = C + I  + G + NX The formula for GDP on the demand side is the sum of consumption spending,…

Q: QUESTION 12 In the expenditure approach to GDP, which of the following is excluded from measurements…

A: Introduction: Gross domestic product (GDP) is the total monetary or market worth of all completed…

Q: 1. The following table shows the National Income data for a country in a year 2019 Items RM billion…

A: Introduction The value of intermediate goods is deducted from the total quantity of production…

Q: An economy’s output is also its income.” Do you agree? Discuss why an economy’s output, in essence,…

A: An economy's output also known as national income is the total production of goods and services…

Q: The table below gives some of the items in the U.S. National Income and Product Accounts in 1995.…

A: The gross domestic product(GDP) of an economy or nation is defined as the market value of all the…

Q: 12. Measuring GDP The following table shows data on consumption, investments, exports, imports, and…

A: Gross domestic product is defined as the monetary value of all the final goods and services produced…

Q: Name the two ways of measuring the national income accounts

A: National income can be measured in three ways that is product method or value-added method, income…

Q: Hint: Add the amount of money spent by buyers of final goods and services. Which of the following…

A: The expenditure method starts with money spent on goods and services. The expenditure approach is a…

Q: 3.  To which component of GDP expenditure (C,I,G, or NX) does each of the following belongs. A.…

A: Gross domestic production (GDP) refers to the total value of all final goods and services produced…

Q: The table shows some of the items in an economy's National Income and Product Accounts. Calculate…

A: Below is the calculation of national income: *National Income = GNP - Depreciation  National Income…

Q: 23. Which of the following is used to calculate GDP through the expenditure approach? a. C + I + G…

A: GDP is the value of the total goods and services that are produced in an economy in a given year. It…

Q: Explain how net exports affect the U.S. economy.Describe both positive and negative impacts onGDP.…

A: Gross Domestic Product or GDP is a statistical measure used to calculate the total money value of…

Q: Calculate GDP using the Expenditure Approach. (all figures are in billions of dollars):

A: GDP Through Expenditure Method : GDP = C+I+G+XM GDP = 6,739.4 + 688.2 + 1,721.6 + (1,096.3 -…

Q: Using what you know about national income accounting, answer the following: a. Assuming that…

A: Disposable income is the income that is left after paying taxes. It is the income that is used to…

Q: 20. Which of the following represents the measurement of GDP as the sum of consumption…

A: GDP is the final value of all the goods and services which are produced within the domestic economy…

Q: Suppose that an economy consists of only two individuals. Trevor has $1310 available to spend on…

A: Given information Total income available =$1310 Economy income refers to  the total income or the…