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- State with valid reason, which of the following statement is true or false: a. Gross Value Added at market price and Gross Domestic Product at market price are one and the same thing. b. Intermediate goods are always durable in nature.Consider the following components of GAVbp:Agriculture, Forestry and Fisheries = 2072Industry = 18723Services = 34195and the following additional data: Indirect taxes net of subsidies = 3859Fixed capital consumption = 6388Imports = 12034Exports = 10357 Calculate the amount of:a) GDPmp.b) Internal Demand or Internal ProcurementConsider a hotel in Krems whose yearly gross value-added (GVA) equals 1 million euros. The following services are not produced by the hotel but outsourced to other Lower Austria companies: -Linen cleaning, whose services for that hotel amount to 100.000 euros in terms of GVA -Advertisement, whose services for that hotel amount to 50.000 euros in terms of GVA In addition, the hotel needs the following inputs: -Food and beverages, for which it pays 300.000 euros, of which 200.000 euros are produced in Lower Austria, 50.000 euros in the rest of Austria and 50.000 abroad. -Energy, for which it pays 100.000 euros, of which 50.000 euros are produced in Upper Austria, of which 25.000 euros imports are needed, the rest is directly imported from abroad. Calculate direct and indirect GVA impact of Lower Austria and Austria.
- Indicate whether each of the following actions or impacts would increase GDPa. An individual purchases bottled water to avoid a contaminated municipal water supply.b. An individual obtains her drinking water from a water fountain at her workplace to avoid a contaminated municipal water supplyc. A homeowner pays a lawn-care company for landscaping servicesd. A neighbor agrees to help a homeowner with landscaping work in exchange for assistance with plumbing worke. A paper company employs workers to plant treesf. An environmental organization provides volunteers to plant treesNational Income DeterminationThe following figures are from data on Good Island EconomyItems $mNet private investment 940Depreciation 56Compensation of employees 2 256Corporate taxes 416Personal taxes 756Personal Consumption expenditure 4 386Government purchases 3 182Indirect business taxes minus subsidies 482Payment of factor income to the rest of the world 95Corporate profits minus dividends 56Government transfer payments and interest 243Exports 855Receipts of factor income from abroad 186Imports of goods and services 385Social insurance payments 332 Required: Use the above information to answer the followingi.) Calculate for Good Island:a. Gross private investment b. Gross Domestic product c. Gross National Product d. Net National Product e. National income f. Personal Income g. Disposable Personal IncomeCalculate the equilibrium level of income if C=R100 million + 0.8y and T = R125 million
- True or False: Personal Consumption Expenditures account for about 25% of GDP. Spending on Consumer Durable Goods tends to be very stable from year to year. Sales of used goods are included in GDP at 35% of their original sale price.If C=0.8Y, I-bar=260, G-bar=200, TR-bar=150, T=0.2Y, X-bar=320 and M=0.1Y, the equilibrium level of income isExplain the relationship between MPL and MC
- QUESTION 17A change in which of the following variables will have NO direct effect on domestic demand? domestic income government spending taxes the interest rate (r) none of the abovePersonal income PI is Select one: a. All income received by households b. All income earned by households minus personal taxes c. All income received by households minus personal taxes d. None of the answers are correct e. All income earned by householdsDefine the following terms showing how they are calculated: Gross Domestic Product Gross Domestic Income Operating Surplus/mixed-income Disposable Income Gross Gross and net savings