Explain some reasons why consumption spending and gross private domestic investment spending are so important.  What determinants do they have in common?

Q: GDP in an economy is $4,600 billion. Consumer expenditures are $3,500 billion, government purchases…

A: Gross domestic product is the summation of four components that are consumption, investment,…

Q: The table below provides Income and consumption Data in billions of dollars. Answer question below…

A: Here, the given table shows the consumption level at different income levels in an economy.

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: In 2017, $1000 worth of shirts are produced by Calvin Klein. That same year, $700 worth of shirts…

A: Consumption is a positive function of income. If income rises by 1 unit, consumption rises by less…

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: In a two-sector economy, Aggregate Expenditure (AE) equals

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

Q: Here is what we know about a household: wages $25,000, unemployment insurance benefits $3,000,…

A: The expenditure way to deal with computing GDP (GDP) considers the amount of every last great and…

Q: That part of income which is either consumed or saved by all the households in an economy is called…

A: Savings refer to the part of income set aside to use in the future. Consumption spending refers to…

Q: Using the 45° degree cross diagram and concepts of aggregate expenditure and aggregate income (GDP),…

A: To explain the expenditure output model which is often called a Keynesian cross diagram depicts the…

Q: How do budget surpluses and budget deficits affect the consumption and investment components of GDP

A: The budget surplus is a situation where the revenue of government exceeds the spending of the…

Q: If personal taxes are $400 billion and disposable income is $4,000 billion, then what does personal…

A: Hi, thanks for the question. As per the guidelines we are allowed to attempt the first question. If…

Q: If personal taxes are 400 billion and disposable income is 4,000 billion, then what does personal…

A: Meaning of Disposable Income: The term disposable income also refers to net income or disposable…

Q: d. Calculate 2013 government purchases of goods and services and government investment spending. e.…

A: => Government purchases of goods and services and investment spending are $3125.5 = $1245.9 +…

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: The table below details the composition of an economy's GDP by spending category. Category…

A: Consumption includes spending on durable, nondurable and services. Construction of new home is a…

Q: Given the following: consumption = 400, investment = 100, government expenditure = 50 and net export…

A: GDP = Consumption + Investment + Government expenditure + Net export

Q: how consumption, saving and investment relate to national income.

A: National income of a country is generated by considering all the economic activities conducted by…

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: 72. Which of the following expenditures would increase the consumption component of GDP?

A: Under the expenditure approach, GDP is equal to the total amount of money spent on personal…

Q: Use data below to answer the following questions: Consumption expenditures $300 billion, Government…

A: Answer: Given, Consumption expenditure=$300 billionGovernment purchases=$50 billionTaxes=$40…

Q: You purchase a Tesla Model 3. What is the impact to the different components of the U.S. GDP and the…

A: GDP is the gross domestic product which is the final value of goods and services that are produced…

Q: iven the following information, calculate personal consumption expenditures. GDP $5,000 Gross…

A: It is given that the GDP is $5,000, gross private domestic investment is $1,500, government…

Q: What is the difference between gross private domestic investment and net private domestic…

A: Domestic investment measures the total investment that the firms or the business invest in projects…

Q: Q.1.8 In the national income accounts: (2) (1) Total spending is always equal to total production…

A: In the national income accounts total spending is always equal to total production and income.

Q: The figure shows the flows of income and expenditure in an economy. In 2008, Q was $1,100 billion, U…

A: The circular flow of income represents the flow of money, goods and services among different sectors…

Q: Discuss why many argue that GDP is not a good measure of economic well-being of society.

A: The gross domestic product (GDP) is the standard measure of value-added produced during a certain…

Q: The following table shows data on personal consumption expenditures, gross private domestic…

A: GDP (Gross Domestic Product) refers to the sum of all the final value of gods and services produced…

Q: Consider a closed economy in which total output equals $13,000. The economy also has the following…

A: Given : In a closed economy, Total Output = $13000 Consumption=$6500 Government Spending = $ 2500…

Q: Which components of aggregate expenditure do not directly depend on current income?

A: Aggregate expenditure refers to the current value of all the final goods and services produced in an…

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: That part of income which is either consumed or saved by all the households in an economy is called

A: Given data: That part of income which is either consumed or saved by all the households in an…

Q: What is the US GDP for the first quarter and second quarter of 2020?  What is the personal…

A: In Keynesian economics, aggregate demand plays a very important role in determining income level and…

Q: Graphing the Aggregate Expenditure Function

A: GDP: It refers to the production of goods and services which have been produced in the economy. The…

Q: explain how total output and total income are related to each other, and why they are related

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

Q: Which of the following would be counted as gross private domestic investment and why? (a) General…

A: a. The Gross Private Domestic Investment is the measure of the physical investment made by the…

Q: Suppose that a country grows at an annual rate of G = 2%, imagine that at time "t" the country has…

A: Given Growth rate = 2 % Time = 10 years Income level after 10 years =Yt * (1 + growth rate)^time =…

Q: Suppose GDP is $ 15 trillion, with $ 8 trillion coming from consumption, $ 2.5 trillion coming from…

A: The correct alternative for the aforementioned question is (C).

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: Given the following: consumption = 400, investment = 100, government expenditure = 50 and net export…

A: GDP = Consumption + Investment + Government expenditure + Net export

Q: 0.30. C = 100 + 0.4 Y is the Consumption Function of an economy where C is Consumption Expenditure…

A: # The sum of consumption and Savings is equal to the equilibrium level of national income.  AD or Y…

Q: In an hypothetical Economy, the consumption function is:- C = 100 + 0.3Y Calculate the value of…

A: According to the above given question, the consumption expenditure is given as:- C = 100 + 0.3Y We…

Q: What is general government final consumption reflecting in terms of GDP of a country? What it…

A: Below is the formula for GDP: GDP = C + I  + G + NXC =ConsumptionG = Government expenditureNX = Net…