Discuss which of the following fall into the categories of consumption, investment,government expenditure and net exports from the Y = C + I + G + NX (X – M) identity, andwhether the impact is to increase or decrease GDP.(a) Charles buys a second-hand textbook from Tim.(b) When Charles bought the book, he paid Sarah $10 to collect it from Tim.(c) Thomas buys a new house(d) Your firm sells meat to Indonesia(e) The fish and chips shop down the road buys fish to make meals for diners.(f) The same shop buys a deep fryer to fry fish for meals.

Gross domestic product is the sum of the value added by all the production of goods and services in…

Answered: Discuss which of the following fall…

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter20: Exchange Rates And The Macroeconomy

Section: Chapter Questions

Problem 3TY

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$ 500,000 $ 40,0000 $ 80,000 $ 10,000 $ 10,000 $ 50,000 $ 20,000 $ 7,000 Discuss which of the following fall into the categories of consumption, investment, government expenditure and net exports from the Y = C + I + G + NX (X – M) identity, and whether the impact is to increase or decrease GDP. (a) Charles buys a second-hand textbook from Tim. (b) When Charles bought the book, he paid Sarah $10 to collect it from Tim. (c) Thomas buys a new house (d) Your firm sells meat to Indonesia (e) The fish and chips shop down the road buys fish to make meals for diners. (f) The same shop buys a deep fryer to fry fish for meals.
From the table below answer, the following questions in the spaces provided, consider the following data (in billion $) for a country in a particular year: (Personal consumption expenditure (C 1000 (Exports (x 120 (Government Purchases of goods and services (G 400 (Imports (m 110 Gross Domestic Product (Y) 4,500 (Taxes (T 200 5) What is the value of gross investment (I)? Answer 6) What is the amount of investment financed by national savings? Answer 7) What is the amount of investment financed by borrowing from or lending to the rest of the world? Answer
For this problem, assume exports equal zero and that firms did not purchase any plant or equipment in the years specified. Suppose in the year 2015, firms in this this country produced 4,000 million widgets, all of which they planned on selling. (In other words, firms were not planning on any changes to their inventories.) Of those 4,000 million widgets, households purchased 3,000 million, and government purchased 750 million. In 2015, what were firm’s planned investments equal to? In 2015, what were firm’s actual investments equal to? (explain). In 2015, what was the relationship between planned expenditures and actual expenditures? (Explain and use numbers) In 2015, what was the relationship between actual expenditures and the amount of output (widgets) produced? All else equal, what will firms likely do in the following year?
Discuss which of the following fall into the categories of consumption, investment, government expenditure and net exports from the Y = C + I + G + NX (X – M) identity, and whether the impact is to increase or decrease GDP.Thomas buys a new house
Position each of the following eight terms in the UK’s circular flow of income diagram below: Consumption (of domestically produced goods and services); Net saving; Net taxation; Government expenditure; Factor payments (national income); Expenditure on imports; Investment; Expenditure on exports. Economists use specific letters to label each of these terms. The letters used are: S, G, X, M, I, Cd, T, Y Attach the correct letter to each of the terms you have written on the diagram.
Suppose you are given the following data for a particular economy (unit: Millions of Euros):Gross National Income mp (GNImp) =1650Investment (I) = 220(Iliq) Net investment = 210Private consumption(C) =1100Net External Income (NEI) = 0Net Indirect Taxes (NIT) = 231Public Spending (G) = 363 Calculate: a) Balance of Goods and Services or Net Exports (NX) and Amortizations/Depreciations (A). b) Net National Product at Base Prices (NNPbp) and Net Domestic Product at Base Prices (NDPbp)
Use the expenditure details of a small economy to answer the questions. All the autonomous expenditures are given in $ million. Consumption expenditure ( C ) = $100 + 0.9 ( Y - T ) Investment(l) = $20 Government expenditure(G) =$80, Tax(T) =0.05Y Export(X) = $40 Import(M) =0.1 Y a. Determine the aggregate expenditure(AE) equation. Provide the working to your answer. b. Determine the equilibrium level of income? Provide the working to your answer. c. Explain the government's budget and trade balance and determine the size of the government's budget and trade balance. d. Suppose the government increase its expenditure by $ 10 million. Determine the new equilibrium income? Provide the working to your answer. e. How much the government must increase its spending to achieve an equilibrium income of $1,000 million? Provide the working to your answer. f. Suppose the full-employment income is $1,200 million. Describe the current economics situation based on the result in part(b). What does the…
Place each of the following transactions in one of the four components of expenditure:consumption, investment, government purchases, and exports/imports. a. Island Manufacturers (Jamaica) sells furniture to the Hilton Hotel in Barbados.b. Island Manufacturers (Jamaica) sells furniture to St Micheal Golf Resort inBarbadosc. Island Manufacturers (Jamaica) sells furniture to John Doe.d. Island Manufacturers (Jamaica) sells furniture to the Jamaican Government.e. Island Manufacturers (Jamaica) builds a new line of home furniture to be soldnext year.
1. a. Write the components of GDP (from the table) according to the expendituremethod. 1. b. By using the expenditure method, calculate GDP for years 2018 and 2019. 1. c. Explain “Changes in inventories”. If a demand shock occurs in the economy and thedemand falls drastically when prices are flexible, how would “Changes in inventories”account respond this? Why? Country Name Year Exports Consumption Investment Net Exports Government Expenditure Imports Cambodia 2018 61.315 75.209 23.341 -1.699 4.904 63.014 Cambodia 2019 67.209 81.655 26.660 -1.512 5.288 68.721

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