In a given year, suppose a company spends $100 million on intermediate goods and $200 million on wages, with no other expenses. Also assume that its total sales are $800 million. The value added by this company equals A) $200 million. B) $300 million. C) $500 million. D) $700 million.       E) $800 million.

Q: In an economy, the real GDP in year 1 (the base year) was $15,000 billion. In year 2, the total…

A: Answer: Nominal GDP represents the market value of goods and services at current year prices,…

Q: Gross Domestic Product at FC by expenditure method (Rin crore) (1) Private Final Consumption…

A: there is 2 method of calculating GDP - income and expenditure method  by using expenditure method we…

Q: the percentage change in the cost of a fixed basket of goods from month to month. the percentage…

A: Inflation rate is the rate of increase in prices of goods and services that are sold in the economy.…

Q: 15. Last year in Vandanica, consumption expenditure was $20 billion, interest, rent and profit were…

A: Total expenditure is the sum of Consumption expenditure, Investment expenditure, Government…

Q: In the base year, nominal GDP O A. may be higher or lower than real GDP. O B. is always greater than…

A: In the base year, nominal GDP is equal to the real GDP. Real GDP measures the total output level…

Q: • Nominal and Real GDP • Nominal GDP is the sum of the quantities of final goods produced times…

A: Gross domestic product is teh total market value produced in domestic boundaries in a year . It is…

Q: Compute the GNP using the Income Approach and Expenditure Approach.

A: GNP is the Gross National Product of an economy. It can be defined as the sum of the value of all…

Q: Describe three problems that make the consumer price index an imperfect measure of the cost of…

A: It is a measure which takes into account the price level of goods in the market and hence is used in…

Q: gross private domestic investment

A: Gross Domestic Product (GDP) depicts the final hoods and services’ values duration a given duration.…

Q: If national income is $5,000 billion, compensation of employees is $2,105 billion, proprietor’s…

A: National income: - national income is the market value of all final goods and services produced in…

Q: 4. In a given year, suppose a company spends $200 million on intermediate goods, $100 million on…

A:

Q: A person's real income will increase by 3% if her nominal income: Increases by 5% while the price…

A: Inflation is the increase in the general price level over a given period of time. Inflation is…

Q: Adam's Ribs in downtown Chicago buys $10,000 worth of beef ribs, $25,000 worth of pork ribs, and…

A: Gross domestic product is used to measure economic growth in terms of output produced or income…

Q: Suppose a person's nominal income increases by 8% while the price level in the economy increases by…

A: Given that,  Suppose a Person's nominal income increases by 8% The price level in the economy…

Q: Investment (I) includes: O the amount spent on new factories and machinery. the amount spent on…

A: Investment can be defined as any asset acquired or money committed for the purpose of earning future…

Q: Suppose the CPI increased by 5 percent over each of the last 5 years while the GDP price index…

A: If CPI increased considerably,used goods or consumer goods prices increased to a greater extent…

Q: In a given year, suppose a company spends $100 million on intermediate goods and $200 million on…

A: In business, total value added is calculated by tabulating the unit value added per each unit of…

Q: The salary of a consumer increased from ¢90, 000 to ¢110,000, which represents his salary for 2021…

A: Given: Salary in 2021=90000 Salary in 2022=110000

Q: he following is data on income (IDR 1,000) and the Consumer Price Index (CPI) with the base year…

A: The inflation is an increase in the general price level in an economy over time. It decreases the…

Q: In a simple economy, calculate gross domestic product using the following figures. (Not all…

A: Gross Domestic product (GDP) is the value of final goods and services produced in the domestic…

Q: Which of these is not a characteristic of the gross domestic product? a. Includes intermediate goods…

A: GDP is one of the most important indicators for measuring the economic activity, stability, and…

Q: (1) Explain the difference between Gross Domestic Product (GDP) and Gross National Income. (ii)…

A: A macroeconomic factor called national income can be used to assess a country's economic stability.…

Q: Comparison of the consumer price index over a longer period of time is problematic because: O The…

A: CPI - A Consumer Price Index measures changes in the price level of a fixed basket of consumer goods…

Q: Gross Domestic Product (GDP) and Gross National Product (GNP)?

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

Q: $Billions 475 Compensation of employees Proprietors' income Corporate profit Net interest 60 40 25…

A: Note: "Sorry", since you have posted multiple sub-parts of a question, I will do only first three…

Q: 1. Inventory is: Group of answer choices a. the total amount of goods that a company produces now,…

A: 1. Inventory is a stock or store of goods. Every company store goods as inventory which will keep…

Q: Item RM (million) 2) The table above shows the transaction in Pinkland last year: a) Calculate…

A: The income approach is one of the approaches used to calculate GDP.

Q: A simple economy produces only lumber, granola bars, and computers. Annual production of these goods…

A: GDP at constant prices refers to the final value of all the goods and services produced in an…

Q: Investment (I) includes: O the amount spent on stocks and bonds. O the amount spent on new factories…

A: expenditure approach: GDP= consumption+investment +government expenditure+net exports

Q: . Investment is a determining factor of GDP.  A decrease in the supply of available funds (i.e. a…

A: Gross domestic product is the value of all final goods and services produced in an economy over a…

Q: Consumption expenditures Imports Government purchases of goods and services $700 Construction of new…

A: "Since you have posted a question with multiple subparts, we will solve the first three subparts for…

Q: Kindly answer all three parts 1) Why do national income accountants compare the market value of the…

A: The total market value of all the finished goods and services produced within a nation's boundaries…

Q: Question 17 One of the following economic relations is negative. It is: The relation between savings…

A:

Q: Q5) The following information is extracted from the National Income Accounts of an economy.…

A: Gross Domestic Product (GDP) is the value of goods and services produced in a country within a year.…

Q: One difference between the CPI and the GDP deflator is CPI uses a fixed basket, Deflator…

A: An economic indicator refers to a piece of economic data, often on a macroeconomic scale, that…

Q: 16. If all quantities produced rise by 5% and all prices fall by 5%, which of the following best…

A: GDP is the value of final goods and services produced in the economy within a given period of time.

Q: Q.7.2.2 Compute the value for the country's GDP (Gross Domestic Product) at market price. Q.7.2.3…

A: Since we only answer up to 3 sub-parts, we will answer the first 3. Please resubmit the question and…

Q: Assume you bought the following items last year: a new Honda CRV built in Ohio, a used boat, a…

A: Gross domestic product(GDP) refers to the market/monetary value/worth of all the goods &…

Q: The nominal GDP of the U.S. in 2019 was approximately $21.4 trillion. This means that The value of…

A: In nominal GDP, the gross domestic product (GDP) is calculated using current market prices. GDP is…

Q: 1. A consumer expenditure survey reports the following information on consumer spending: 2020 2021…

A: