9. Determine whether the following statement is correct or wrong:(a) "In 1933 net private domestic investment was minus $6 billion. This means that in that particularyear the economy produced no capital goods at all." (Correct, Incorrect ).(b) “Though net investment can be positive, negative, or zero, it is quite impossible for grossinvestment to be less than zero." (Correct, Incorrect ).

GDP refers to the value of goods and services produced in an economy over a given period of time.…

Answered: 9. Determine whether the following…

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter6: Tracking The U.s. Economy

Section: Chapter Questions

Problem 1.3P

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DATASET 1 Table 1 gives data for real consumption expenditure, real income, real wealth, and real interest rates for country X for the years 1947-2000. TABLE 1: REAL CONSUMPTION EXPENDITURE, REAL INCOME, REAL WEALTH, AND REAL INTEREST RATES FOR COUNTRY X, 1947-2000 Year Consumption Expenditure (C) Income (Yd) Wealth (W) Interest Rate (R) 1947 976.4 1035.2 5166.8 -10.351 1948 998.1 1090.0 5280.8 -4.720 1949 1025.3 1095.6 5607.4 1.044 1950 1090.9 1192.7 5759.5 0.407 1951 1107.1 1227.0 6086.1 -5.283 1952 1142.4 1266.8 6243.9 -0.277 1953 1197.2 1327.5 6355.6 0.561 1954 1221.9 1344.0 6797.0 -0.138 1955 1310.4 1433.8 7172.2 0.262 1956 1348.8 1502.3 7375.2 -0.736 1957 1381.8 1539.5 7315.3 -0.261 1958 1393.0 1553.7 7870.0 -0.575 1959 1470.7 1623.8 8188.1 2.296 1960 1510.8 1664.8 8351.8 1.511…
DATASET 1 Table 1 gives data for real consumption expenditure, real income, real wealth, and real interest rates for country X for the years 1947-2000. TABLE 1: REAL CONSUMPTION EXPENDITURE, REAL INCOME, REAL WEALTH, AND REAL INTEREST RATES FOR COUNTRY X, 1947-2000 Year Consumption Expenditure (C) Income (Yd) Wealth (W) Interest Rate (R) 1947 976.4 1035.2 5166.8 -10.351 1948 998.1 1090.0 5280.8 -4.720 1949 1025.3 1095.6 5607.4 1.044 1950 1090.9 1192.7 5759.5 0.407 1951 1107.1 1227.0 6086.1 -5.283 1952 1142.4 1266.8 6243.9 -0.277 1953 1197.2 1327.5 6355.6 0.561 1954 1221.9 1344.0 6797.0 -0.138 1955 1310.4 1433.8 7172.2 0.262 1956 1348.8 1502.3 7375.2 -0.736 1957 1381.8 1539.5 7315.3 -0.261 1958 1393.0 1553.7 7870.0 -0.575 1959 1470.7 1623.8 8188.1 2.296 1960 1510.8 1664.8 8351.8 1.511…
#6. Which of the following is not correct? a Gross domestic product is both total income in an economy and total expenditures on the economy’s output of goods and services. b In a closed economy net exports are zero. c National saving is the sum of private saving and public saving. d Purchases of capital goods are excluded from GDP.
Q2.In each of the following, calculate private, public and national savings and the national savings rate. Given that: Household savings = 200 Business savings = 400 Government purchases = 100 Government transfers = 100 Tax collections = 150 Gross Domestic Product = 2,200
4 All of the following are components of aggregate expenditure except Select one: a. actual government purchases b. net export c. planned investment
1 Which one of these will be deducted from gross output to determine the net output? a. Intermediate consumption b. Factor income from abroad c. Total government spending d. Private income
Gross Domestic Product Explain how net exports affect the US economy. Describe both positive and negative impacts on GDP. Why do national income accountants use net exports to compute GDP, rather than simply adding exports to the other expenditure components of GDP? You have the following information on 3 countries: Soccerland, Handeggland, and Neverland How long will it take until Soccerland’s GDP increases by 75%? How long will it take until Soccerland and Handeggland have the same GDP? Soccerland’s population is not happy that, eventually, Handeggland is going to have higher GDP than their country. They feel that they are a much better country, so they are going to work harder to ensure that Handeggland will never catch up with Soccerland. If Soccerland’s new growth rate is constant every year, what is the minimum growth rate that ensures that Soccerland will always have a higher GDP than Handeggland? Neverland’s ambition is to host the World Cup. At the…
1. Explain in your own words why the flow of gross domestic product during a given interval must always be equivalent to the flow of gross domestic income within that same period.

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