Place each statement in the appropriate category. GDP grows faster GDP grows slower when property rights are clearly defined and upheld when consumption is a large fraction of GDP with investment when children go to work instead of school with efficient financial markets with corruption during revolution Answer Bank
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- Which of the following are counted in this year’sGDP? Explain your answer in each case.a. Flashy Car Company sold a used car.b. Juanita Jones cooked meals for her family.c. IBM paid interest on its bonds.d. José Suarez purchased 100 shares of Microsoftstock.e. Bob Smith received a welfare payment.f. Carriage Realty earned a brokerage commissionfor selling a previously owned house.g. The government makes interest payments topersons holding government bonds.h. Air and water pollution increase.i. Gambling is legalized in all states.j. A retired worker receives a Social Securitypayment.Which of the following questions would be studied in the area of microeconomics? Select one: a. What determines the number of hours an individual works? b. Do interest rates affect net exports? c. Will an increase in government spending cause inflation? d. What portion of total spending comes from households in the economy?Assume GDP is currently $10,850 billion per year and the quantity of money is $833 billion. The nation collectively holds enough money to finance how many days worth of GDP expenditure?
- What is ? 1-)Potential GDP 2-)Monetary Policy 3-)Fiscal PolicyA government will choose to increase spending: Multiple Choice a) to stimulate the economy. b) if households are growing wealthier c) when it expects tax revenues to increase. d) Incorrect when interest rates increase.ate the three possible relationships between production, income and spending in macroeconomic theory
- Draw a simple circular flow diagram (without government) and use the relationships shown in the diagram to explain how producers’ optimism about future sales can lead to an increase in future sales.Classify each of the following as IN AFRICA's 2020 GDP or NOT IN AFRICA's 2020 GDP. Crude oil (used in the production of gasoline) produced in 2020: IN AFRICA 2020 GDP NOT IN AFRICA 2020 GDP Oil produced by an AFRICA company in AFRICA in 2020 (and sold to consumers): IN AFRICAs 2020 GDP NOT IN AFRICA 2020 GDP Oil produced by AFRICA-owned companies outside of AFRICA (and sold to consumers) in 2020: IN AFRICA 2020 GDP NOT IN AFRICA 2020 GDPIn Germany in 2009 there was considerable debate about the extent to which thegovernment should be intervening in the economy. For example, its citizens were worriedabout the future of Opel, a German car brand that was part of the ailing General Motors.Some wanted the government to make sure jobs were saved no matter what. Others,however, were more hesitant and worried about becoming the government becoming toointerventionist. Traditionally since the Second World War the German government hasseen itself as a referee in market issues and has avoided trying to control parts of theeconomy. It would regulate anti-competitive behaviour, for example, but not try to runmany industries. However in the recession of 2009 when the economy was shrinking thegovernment was forced to spend more to stimulate demand and had to intervene heavilyto save the banking sector from collapse. The government also had to offer aid tobusinesses to keep them alive. 1. What are the possible benefits of a…
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