After reading the statement below you will choose 2 answers! Determine where this transaction should be classified in the GDP formula. Choose what would happen to GDP as a result of this transaction. The government decides to build more bridges in California C I G X M Increase Decrease

After reading the statement below you will choose 2 answers! Determine where this transaction should be classified in the GDP formula. Choose what would happen to GDP as a result of this transaction. The government decides to build more bridges in California C I G X M Increase Decrease

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter19: Measuring Economic Performance

Section: Chapter Questions

Problem 6P

See similar textbooks

Related questions

Q: base on the data given construct the graph for GDP at current prices, manufacturing and wholesales…

A: Gross domestic product is the sum total of the money value of goods and services produced in an…

Q: Use the following data of a hypothetical economy. Calculate the net Government Purchases $15…

A: Here we calculate the GDP for calculating the NDP , GDP is the production of final goods and…

Q: Changes in business inventory will be calculated in GDP under which of the following categories

A: GDP = C + I + G + X - M Where C = personal consumption expenditure I = Gross private domestic…

Q: We learned that the calculates the LEI, while the calculates GDP. Bureau of Economic Analysis;…

A: NOTE: Since you have asked multiple questions we will be answering only the first one, if you need…

Q: Why is GDP (whether nominal or real) almost certainly an incomplete picture of how well an economy…

A: Nominal GDP is the value of goods and services produced in an economy in a year, measured at the…

Q: What will be the ultimate effect on GDP and P?

A: The market is in equilibrium at the point where the demand is equal to supply. GDP refers to the…

Q: Thoroughly explain the components of GDP and relate those components to the Circular Flow model with…

A: The components of GDP are:1. Consumption expenditure2. Investment expenditure3. Government…

Q: Explain difference between GDP and GNP. Support your answer with simple examples from Oman economy.

A: GDP tells us the value(total) of the finished domestic g&s(goods & services) during a…

Q: A vertical curve means that any increase in GDP will result in which of the following for the…

A: When talking about real GDP and price level, a vertical curve explains the long-run aggregate supply…

Q: Larry and Megan Smith live in Swarthmore, PA. Megan's father, Raphael, lives in Sweden. For each of…

Q: Use the following information to answer questions 14 and 15. Consider the following transactions in…

A: Since the question you have posted consists of multiple parts, we will answer the first question for…

Q: What is GDP, and why is it a useful measure? What are the most importantcomponents of GDP in the…

A: Domestic income is the total of factors incomes generated within a country during an accounting…

Q: Identify whether or not each of the following transactions would be included in GDP, and if so,…

A: (d) would be included in GDP Income method.

Q: Which of the following are included in this year’s GDP? Explain your answer in each case.a. Interest…

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

Q: Examine the table below. Components of GDP on the Supply Side Year 1 (billions of dollars) Year 10…

A: The gross domestic product (GDP) is the monetary measure and value of all final goods and services…

Q: You are given the following information about an economy. C=20+0.8(Y-T) 1=100 G=520 T=0.25Y and…

A: Equilibrium GDP is denoted to be as that level of the output whose certain level of the production…

Q: What is Potential GDP and give an example?

A: Potential GDP is similar to normal GDP, but rather than only representing the final market value of…

Q: Jacques and Kyoko Lalime live in Swarthmore, PA. Kyoko's father, Musashi, lives in Sweden. For each…

A: Aggregate Demand refers to the total quantity of goods and services demanded in an economy. It has…

Q: When the municipality of Salmiya constructs a new school building, which component of GDP increases?…

A: Meaning of Gross Domestic Product (GDP): The term gross domestic product refers to the situation…

Q: Consider the expenditure approach to the measurement of GDP. For each of the following situations,…

A: Since you have asked multiple-part questions, we will only solve the first three questions for you.…

Q: Use the table to slice the problems. A. Compute nominal GDP in 2011. B. Compute real GDP in 2012 C.…

A: Nominal GDP is calculated by multiplying current year prices of goods and services with current year…

Q: Write 4 difference between GDPMP and NNPFC

A: The 4 main differences between GDPMP and NNPFC are as follows:-

Q: After reading the statement below you will choose 2 answers! Determine where this transaction…

A: The economies tend to work upon the basis of the expenditures which various entities get involved…

Q: The items listed below, determine whether or not each would be used to compute GDP. If it is…

A: GDP refers to the sum total of market value of final goods and services produced in a country during…

Q: Katniss works for the Panem Bureau of Economic Analysis. Panem produces three goods: bread and axes,…

A: We know that, GDP is the money value of all final goods and services that can be produced within a…

Q: For each of the following transactions that occur in their lives, identify whether it is included in…

A: The expenditure approach to calculating gross domestic product(GDP) takes into account the sum of…

Q: What is included in U.S. aggregate demand? a) all spending by consumers, firms, the government, and…

A: The curve that depicts quantities of goods and services being produced in an economy at various…

Q: Explain briefly whether each of the following would cause GDP to overstate or understate the degree…

A: The total monetary or market value of all finished goods and services produced within a country's…

Q: Given the following: Ca = $100, Ig = $50, Xn = − $10, and G = $30, what is the economy’s equilibrium…

A: Equilibrium GDP (Y): when an economy or business has an equal amount of production and market…

Q: Suppose a parent was earning $20,000 per year working at a local firm. The parent then decides to…

A: $20,000 was the earning of parent.Babysitter earning was $10,000

Q: Which of the following is a shortcoming of GDP?a. GDP excludes changes in inventories.b. GDP…

A: Gross Domestic Product is the income, output and expenditure on the economy's output of commodities…

Q: For each of the following events, what is the likely effect on GDP?

A: Gross Domestic Product is the aggregate money value of all final goods and services produced in a…

Q: Compute: (Refer to the photo below for the given data) GDP NY

A: GDP = C + I + G + (X - M) = 30,000 + 3,000 + 20,000 + (42,000 - 50,000) =…

Q: Briefly analyse two possible factors that will lead to GDP understating the level of economic…

A: GDP measures the final value of goods and services produced in an economy. However, economic welfare…

Q: In recent years, people have benefited from greater amounts of leisure time. This trend: has caused…

A: Leisure time is the experience quality of free time from work. It is the time spent away from work,…

Q: After reading the statement below you will choose 2 answers! Determine where this transaction…

A: Here, it is given that an increase in Income of the people of Europe will increase the demand for US…

Q: Given the following: Ca = $450, Ig = $250, and G = $30, what is the economy’s equilibrium GDP if…

A: The country is operating under closed economy.

Q: Why is a distinction made between the recovery and the expansion phases if GDP is rising in both…

A: The fluctuations in nations GDP overtime is shown by the business cycle models. It helps in showing…

Q: For the following question , please indicate whether current GDP of the United States will be…

A: GDP is sum of value of all goods and services produced in the nation at a given period of time.

Q: When the Japanese car maker Toyota expands one of its car factories in the United States, What is…

A: The economies around the world work, or operate with the motive of increasing their production, as…

Q: For the following question , please indicate whether current GDP of the United States will be…

A: Components of GDP = C + I + G + (X-M)

Q: Place the transactions below in their appropriate categories in the GDP and calculate the overall…

A: GDP GDP (Gross Domestic Product) basically refers to the total monetary worth of all final products…

Question

After reading the statement below you will choose 2 answers!

Determine where this transaction should be classified in the GDP formula.
Choose what would happen to GDP as a result of this transaction.
The government decides to build more bridges in California

C

I

G

X

M

Increase

Decrease

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

Explain briefly whether each of the following would cause GDP to overstate or understate the degree of change in the broad standard of living. The environment becomes dirtier The crime rate declines A greater variety of goods become available to consumers Infant mortality declines
After reading the statement below you will choose 2 answers! Determine where this transaction should be classified in the GDP formula.Choose what would happen to GDP as a result of this transaction.Many more Americans decide to buy Japanese cars rather than American cars. CIGXMIncreaseDecrease
After reading the statement below you will choose 2 answers! Determine where this transaction should be classified in the GDP formula.Choose what would happen to GDP as a result of this transaction.Due to increased incomes, Europeans buy more US good and services. Your answer: CIGXMincreasedecrease
Using the expenditure approach to the measurement of GDP. For each of the following situations, decide if that transaction will be included in a country’s 2021 GDP calculation(Hint: If it is to be included, state which expenditure category will it be included under;and if not to be included give a reason why not)Q.2.1.1 Household spends R2 500 on food supplies in 2019. Q.2.1.2 Household spends R5 700 on a brand new television set . Q.2.1.3 The country’s government pays out a disability grant (transfer) toan individual
Explain briefly whether each of the following would cause GDP to overstate or understate the degree of changein the broad standard of living.a. The environment becomes dirtierb. The crime rate declinesc. A greater variety of goods become available to consumersd. Infant mortality declines
what is the uderlying assumption of income GDP?
This excercise requires the GDP expenditure approach. Please put explanation