Differentiate between the following: a) b) Expenditure Approach and the Value added Approach Nominal Income and Real Income

Q: Q6. Where do new-home sales appear in the circular flow of expenditure and income? Explain how a…

A: The total financial or market value of all finished product and services created within a country's…

Q: Discuss macroeconomic theory and presents what are the variables that determine gross domestic…

A: Economics as a subject deals with the allocation of scarce resources among humans with unlimited…

Q: An economy is currently in equilibrium. The following figures refer to elements in its national…

A: The market value of all commodities and services produced in the economy over a certain time period…

Q: Explain the circular Flow program in detail and also explain the components of GDP

A: GDP: (GDP) is the all-out money related or market estimation of the multitude of completed…

Q: Calculate the net domestic product (NDP),

A: NDP (Net Domestic Product): It refers to the measurement of the economics output. It is the account…

Q: Which one of these will be deducted from gross output to determine the net output? a. Total…

A: Net output = Gross output – Intermediate consumption(Depreciation)   whereas factor income from…

Q: The link between gross domestic product (GDP) and national income (NI) is Select one from the…

A: National Income is the Net National Product at factor cost, that is, NNPFC. To reach at NNPFC from…

Q: Please solve using a national income accounting: An increase in disposable income will increase in…

A: National income means the total factor income earned by country's national income during an…

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

A: e.A homeowner buys shingles to re-do her roof. Yes, this will be included in GDP, in consumption…

Q: Provide an interpretation for how consumption is related to income in the following: consumption =…

A: Marginal propensity to consume is the proportion of the disposable income that a person wants to…

Q: In the circular flow of expenditure and income, Select one: a. households are sellers and firms are…

A: We know that in the circular flow of expenditure and income a household are sellers and the firms…

Q: Which of the following is included in the expenditures approach to GDP? Select one: CA. expenditures…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Find a) Personal disposable income b) Personal income in the following question: Corporate tax 120…

A: Personal income is the total households income, which excludes the government income and corporate…

Q: Use the concepts of gross investment and net investment to distinguish between an economy that has a…

A: In the computation of the GDP, the main components that are evaluated are the personal consumption…

Q: consider the following hypothetical economy. Consumption makes of 60% of national income,…

A: Given consumption is 60% of national income implies that C=0.6Y, where C is consumption and Y is…

Q: Explain any two items which are included in the expenditure method of national income?

A: According to the given question According to the expenditure method the national income is basically…

Q: Which of the following is NOT a problem associated with using GDP as a measure of economic…

A: Meaning of Macroeconomics: The term macroeconomics refers to the situation of economic and…

Q: people typically pay more attention to their real income or their nominal income?

A: GDP is used to explain the overall economic welfare of a nation. It is used to calculate the…

Q: Please explain the relationships between interest rates, expected rates of return, investment, and…

A: The interest rate is the amount of interest charged by the lender on the borrower. Those who takes…

Q: Explain why an economy's income must equal its expenditure.

A: The total expenditure refers to the total amount of money spent by the firm, individual or…

Q: The investment category of GDP measures three different types of expenditures. What are they? Why is…

A: Expenditure applies to payments made for commodities or services or to obligations accrued in return…

Q: Manuel and Poornima White live in Swarthmore, PA. Their son, Shen, owns his own plumbing business.…

A: Components of GDP:- C= Consumption I= Investment G= Government spending X= Export M= Import

Q: Which of the following is included in the computation of Gross Domestic Product (GPD)? A. Govemment…

A: GDP is the market-value of all the final goods and services(G&S) produced within the…

Q: Explain the concept of the circular flow of the income in the economy.

A: The circular flow of the expenditure and the income in known as a procedure whereby the expenditure…

Q: Identify the immediate effect of each of the following events on U.S. GDP and its components. •…

A: A) When James is receiving a social security check:- It is not included in GDP as it is a part of…

Q: An economy’s output is also its income.” Do you agree? Discuss why an economy’s output, in essence,…

A: An economy's output also known as national income is the total production of goods and services…

Q: Derive the following: (i) National Income (ii) Net Investment Personal Income Disposable Income…

A:

Q: Define the following i. Gross Domestic Product ii. GDP Deflator iii. National Income iv. Autonomous…

A: A charge for products or services made with money or credit is referred to as an expense.

Q: Name the two ways of measuring the national income accounts

A: National income can be measured in three ways that is product method or value-added method, income…

Q: A farmer grows wheat, which she sells to a miller for $100. The miller turns the wheat into flour,…

A: (a)GDP can be depicted as the final market value of all the finished goods & services in an…

Q: Explain some reasons why consumption spending and gross private domestic investment spending are so…

A: GDP (Gross Domestic Product): It refers to the total of market value of all produced final goods and…

Q: Use the following composition of expenditure for the economy of a country named the Republic of…

A: Expenditure on GDP is always equal to GDP at market prices. It indicates the total value of spending…

Q: Explain how gross domestic product is calculated using each of the following: the income approach…

A: GDP refers to the monetary value of all final goods and services produced in a country during a…

Q: xplain the components of AD, and how it relates to the “Product Market” portion of the simple…

A: In economics, the final demand domestically can be described as the total demand for final services…

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

A: GDP refers to the gross domestic product of the economy which measures the total money value of all…

Q: Explain which expenditure component of GDP would be affected by these transactions, if any. a. The…

A: When a citizen of a country makes transactions in a specific year on the basis of current year…

Q: Definition of GDP and explanation of why this is equal to national income [ an explanation of how…

A: GDP (Gross Domestic Product) refers to the market value of all final goods and services that are…

Q: what is the output approach, the income approach, and the expenditure approach to measuring national…

A: The income, expenditure and the output approaches are used to measure national income.

Q: explain the concept of National income.Also state its features

A: National income is the basic concept of macro economics. It is the total income of all the services…