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Q: Why are intermediate goods and services excluded when calculating the value of GDP
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Q: Distinguish between GDP deflator and Consumer Price Index
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Q: why the expenditure apporach is used to calculate gdp
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A: GDP calculate only value of final good.
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A: National income is the value of final goods and services produced in an economy every year.
Q: (a) Comment on the limitations of using GDP as a way of measuring economic well-being. (b)…
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Q: Why do we calculate GDP using the expenditure approach
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Q: Identify 2 possible exclusions to GDP and discuss why they have to be excluded.
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Q: GDP is a useful measure since it provides a single measure of the value of the entire variety of…
A: Gross Domestic Product (GDP) is the calculation of all the goods and services produced and sold…
Q: Explain the difference between GDP and GNP with an example.
A: GDP includes the values of only final goods thus it excludes the value of intermediate goods.
Q: We use market values to measure GDP because a. We want to compare different types of goods b.…
A: GDP refers to the final value of goods and services in an economy during a given year. This includes…
Q: Prices for which of the following are included in the GDP deflator, but not included in the Consumer…
A: The GDP deflator considers the price of currently produced goods and services to the price of the…
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i) income approach
ii) expenditure approach
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- PI= NI-retained corporate profits + net transfer payments - indirect tax National income: 19,786Less:Corporate profits with inventory valuation and capital consumptionadjustments -2,771Taxes on production and imports less subsidies -1,182Contributions for government social insurance, domestic -1,541Net interest and miscellaneous payments on assets -644Plus: Personal income receipts on assets 3,202Plus: Personal current transfer receipts 4,617 Personal income equals : ?Calculate the value of NDPFC if GDPMP is $1200 million, depreciation Is $250 million and the net indirect taxes are $100 millionUsing the following information, calculate the Net Domestic Product at Factor Cost: Government Final Consumption Expenditure 100 Net Indirect Tax 80 Private Final Consumption Expenditure 300 Consumption of Fixed Capital 20 Gross Domestic Fixed Capital Formation 50 Net import 10 Closing stock 25 Opening Stock 25 a. 410 b. 340 c. 380 d. 420
- Calculate the net value added at MP from the following data. Depreciation = $5 billions Sales = 100 Opening stock = 20 Intermediate consumption = 70 Excisr duty = 10 Change in stock = -10(J) Question 2 Given the following data, calculate Net Domestic Product (NDP) at market prices: Gross National Product at market prices=US\$ 85,000 Depreciation=US$3,000Net factor income from abroad = US\$ 2,000What is the value for Gross Domestic Product if households receive $315 in net interest income, wages equal $10,169, rental receipts on land are $884, total business profits before taxes are $1,862, and indirect business taxes are $1,139? Assume depreciation and net foreign income are zero. Enter the value without a $ and without commas.
- ________ would be included in the gross national product of Germany. A) The wages paid to German workers producing automobiles for a Canadian company B) The profits earned by a Canadian auto company operating in Germany C) The wages paid to German workers producing automobiles for sale in Canada D) The profits earned by a German company operating in Canada E) The expenses incurred by a Canadian living#4 Personal Taxes $ 40 Social Security Contributions 15 Taxes on Production and Imports 20 Corporate Income Taxes 40 Transfer Payments 22 U.S. Exports 24 Undistributed Corporate Profits 35 Government Purchases 90 Gross Private Domestic Investment 75 U.S. Imports 22 Personal Consumption Expenditures 250 Consumption of Fixed Capital (depreciation) 25 Net Foreign Factor Income 10 Statistical Discrepancy 0 Refer to the accompanying data (all figures in billions of dollars). NDP is Multiple Choice $402. $370. $392. $467.Refer to the economic activities information provided and answer the questions that follow Depreciation. 40zmw Receipts of factor income from the rest of the world. 30zmw Government purchases 100zmw Imports 50zmw Payments of factor income to the rest of the world. 50zmw Net private domestic investments. 200zmw Personal income taxes. 120zmw Personal consumption expenditure 600zmw Dividends 20zmw Exports 60zmw Determine the value of GDP NNP NI PI DI
- The following data relate to an emerging African country.Item Value('000) KSHSGNP 8,000,000 Depreciation 100,000Indirect Business Taxes 80,000Gross Investment 400,000Total population 30,000Consumption 10,000Personal Income Taxes 800Excise duty 80Personal Income 89,000Net factor incomes from abroad 200,000 Using the above data, calculate: Net National Product and GNP per capita Net investment and Disposable personal income Gross domestic productConsider the following information given for calculation of different national income aggregates: Items Rs in crore Value of output 100000 Depreciation 6000 Indirect Taxes 6000 Subsidies 1000 Intermediate consumption 24000 Value added 76000 What will be the value of GNP at market prices as per the given information? Which of the following will be the value of NNP at market prices? Which of the following will be the value of GNP at factor cost? If disposable income is Rs 500 and saving Rs 100, what will be the average propensity to consume? If MPC= 1/2, what is the value of K (Investment multiplier)? What will be the value of NNP at factor cost as per the given information? What will be the value of GDP at market prices as per given information?Depreciation 200 Exports 150 public transfer 200 Gross domestic private investment 300 corporate income tax 100 factor receipts from abroad 400 gevenment expenditure on goods and services 250 interest income 800 compensation of employees 2600 net interest on government debit 50 indirect business taxes 100 factor payments to abroad 200 imports 200 proprietors incom(profits) 700 retained corporate profit 200 personal consumption expenditure 4500 personal taxes 100 social security contribution 50 rental income 600. From the above data find personale disposable income.