(Aggregate Expenditure) What are the components of aggregate expenditure? In the model developed in this chapter, which components vary with changes in the level of real GDP? What determines the slope of the aggregate expenditure line?
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- (Aggregate Expenditure) What are the components of aggregate expenditure? In the model developed in this chapter, which components vary with changes in the level of real
GDP ? What determines the slope of the aggregate expenditure line?
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- Question 2: Fill in the blanks. The three different approaches to measuring the GDP are the expenditure approach, the approach, and the approach. The expenditure approach aggregates the spending by the four sectors of the economy: (a) the household sector, (b) the sector, (c) the sector, and (d) the foreign sector, to yield the total GDP. The largest spending in Canada’s aggregate GDP comes from the sector. When using the income approach, the first step is to calculate the total national income by adding employee compensation, proprietor’s income, , net interest, and rental income. There are six categories of economic exchanges that are omitted from GDP calculations. One such category is government transfer payments (like unemployment insurance payment), because it represents transfers of income without new production. Another category is , because because they are unpaid and not…Section 1, Measuring the Size of the Economy, introduces Gross Domestic Product, which is the value of all goods and services produced in a country in a given year. It is sometimes thought of as our nation’s income. For this discussion, your task is to: Explain the merits, and why we would expect to see a correlation between GDP and well-being. Explain the shortfalls of analyzing GDP, by itself, to assess the state of the economy.1 ) Changes in business inventories are: classified as government purchases. classified as consumption expenditures. classified as investment expenditures. excluded from GDP.
- Question 15 Gross domestic product (GDP) in the economy is measured by the: market value of all final goods and services produced in the economy. total number of goods produced in the economy. total number of goods and services produced in the economy. total number of services produced in the economy.6. (Aggregate Expenditure) What are the components of aggregate expenditure? In the model developed in this chapter, which components vary with changes in the level of real GDP? What determines the slope of the aggregate expenditure line?1) Many financial analysts use GDP as a measure of the economy's performance. However, GDP has several shortcomings in terms of measuring economic well-being. State at least three such shortcomings and explain how each affects the validity of GDP as a measure of economic well-being.
- You are a junior executive of a new cellular phone carrier called Technologies of the Future (TOF) that competes in the same market as Verizon Wireless, AT&T, and T-Mobile. You are asked to write a professional document that discusses the concepts below. Define Gross Domestic Product (GDP). Differentiate between Real GDP and Nominal GDP. Explain how the GDP of the U.S. may influence the sale of smartphones by TOF. What percentage of the GDP is attributed to the sale of cellular phones (including carrier services) in the United States? Define the Human Development Index (HDI). Explain if the HDI has an influence on the sale of smartphones in the U.S. Which aspect of the HDI might influence the sale of smartphones? Identify the target audience for the sale of smartphones in the U.S.. 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.Use the following composition of expenditure for the economy of a country named the Republic of Tapuwa, for the year ended 2019 to answer the questions below: Show all calculations and formulae Calculate the value of the country’s GDE (Gross Domestic Expenditure).20. Which of the following represents the measurement of GDP as the sum of consumption expenditures, investment, government purchases of goods and services, and net exports? a.Wealth approach b.Income approach c.Expenditure approach d.Saving approach
- 1. Which of the following are included in this year’s GDP? Explain your answer in each. A 2-hour decrease in the length of the workweek. The purchase of an AT&T corporate bond. A $2 billion increase in business inventories.Question 1Explain the expenditure measure of GDP. What is the underlying assumption of this measure? Provide one example where the underlying assumption is violated. Explain the income measure of GDP. What is the underlying assumption of this measure? Provide one example where the underlying assumption is violated. Explain why we need to compute nominal GDP, real GDP, and per capita GDP.127.) Suppose Robinson and Crusoe are stranded on a desert island in the Pacific Ocean and discover a large amount of currency from a previous shipwreck. Friday catches 20 fish and sells them to Robinson Crusoe for $40 apiece. Robinson Crusoe uses the fish he purchased from Friday to make 40 gallons of fish oil, which he sells to Friday for $20 per gallon. If the transactions above are the only ones that take place in 2002, what is the GDP of the island in 2002? $0 $800 $1600 $2400