Can you use the list below to compute GDP using the Expenditures approach?Personal Consumption expenditures     $600Transfer payments    $15Consumption of fixed capital     $20Interest     $11Exports     $15Government purchases    $85Compensation of employees     $225Imports    $18Net private domestic investment     $65

Question
Asked Oct 6, 2019

Can you use the list below to compute GDP using the Expenditures approach?

Personal Consumption expenditures     $600

Transfer payments    $15

Consumption of fixed capital     $20

Interest     $11

Exports     $15

Government purchases    $85

Compensation of employees     $225

Imports    $18

Net private domestic investment     $65

check_circleExpert Solution
Step 1

GDP (Gross Domestic Product): It refers to the total of market value of all produced final goods and services during a specific period of time.

Step 2

The formula for the gross domestic capital formation i...

Net private domestic investment
Consumption of fixed capital
Gross domestice capital formation =
Gross domestice capital formation =65+20
Gross domestice capital formation -$85
help_outline

Image Transcriptionclose

Net private domestic investment Consumption of fixed capital Gross domestice capital formation = Gross domestice capital formation =65+20 Gross domestice capital formation -$85

fullscreen

Want to see the full answer?

See Solution

Check out a sample Q&A here.

Want to see this answer and more?

Solutions are written by subject experts who are available 24/7. Questions are typically answered within 1 hour*

See Solution
*Response times may vary by subject and question
Tagged in

Business

Economics

Other

Related Economics Q&A

Find answers to questions asked by student like you

Show more Q&A add
question_answer

Q: 1.Which items directly add to GDP? Group of answer choices Microsoft sells 10 computers to UCF  [ Ch...

A: The Gross Domestic Product is the summation of the money value of all the final goods and services p...

question_answer

Q: (Use for questions 1 - 3): Two soap producers, the Fortnum Company and the Maison Company, can stres...

A: Dominant strategy: The dominant strategy is that the each firm has the better choice, or the outcome...

question_answer

Q: Draw and explain a productino possibilities frontier for an economy that produces milk and cookies. ...

A: Production possibility frontier is the graphical representation of combinations of goods that can be...

question_answer

Q: a Search the web... f a Assignment 2.pdf websites like khan academy Assignment 2 PAssignment 2.pdf f...

A: Table: Willingness to pay of each type of consumer:

question_answer

Q: 1. A consumer consumes two kinds of goods, namely X and Y. The total satisfaction (TU) obtained in c...

A: Hello, since there are multiple questions posted, we will answer first question. If you want any spe...

question_answer

Q: Consider the utility function U(x,y)=5x +2y. An agent with a budget constraint of 10x + 5y = 20 will...

A: Here, it is given thatUtility function, U(x, y) = 5x + 2y  where x and y depicts that they are subst...

question_answer

Q: When it comes to advice being given to policy makers, economists may offer conflicting advices for w...

A: Policy makers while taking advice from different economist’s always face conflicts for determining a...

question_answer

Q: You have been asked by the President of Tim Hortons Inc.’s (TMI) (Click here to review the TMI Case ...

A: Hello. Since your question has multiple sub-parts, we will solve first three sub-parts for you. If y...

question_answer

Q: Political speech enjoys full First Amendment protection. True or False?

A: The first Amendment prevents the U.S. government from making laws which prohibits freedom to exercis...