Q.1 I. Explain the following identity: C+ G+I+ NX= Y = YD+(TA – TR) = C + S+ (TA – TR) II. How is the above identity be used to measure GDP in Pakistan? What are the disadvantages of using the above identity to measure economic III. development?

Q.1 I. Explain the following identity: C+ G+I+ NX= Y = YD+(TA – TR) = C + S+ (TA – TR) II. How is the above identity be used to measure GDP in Pakistan? What are the disadvantages of using the above identity to measure economic III. development?

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter11: Gross Domestic Product

Section: Chapter Questions

Problem 7SQ

See similar textbooks

Related questions

Q: Explore 05 yearly data of the following indicators with respect to Pakistan in graphical as well as…

A: Year GDP (Rs. Million) GNP (Rs. Million) NDP (Rs. Million) NNP (Rs. Million) 1999-00…

Q: GDP and GNP cannot be grouped and calculated by industry. TRUE OR FALSE?

A: Gross national product (GNP) is the total market value of the final goods and services generated by…

Q: Country A produces GDP according to the following equation: GDP = 5VK. The country has a…

A: Let savings rate be represented by s. In steady-state: s×steady state level of GDP=Depreciation rate…

Q: Country A produces GDP according to the following equation: GDP 5√K. The country has a depreciation…

A: Depreciation is the reduction in the amount of capital because of wear and tear. Investment is the…

Q: Country A produces GDP according to the following equation: GDP = 5√K. The country has a savings…

Q: Site and discuss 3 indicators that can be easily observed around (without knowing the GDP…

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

Q: 1. GDP is abbreviation of a) General Gross Price c) Gross Development Projects b) Gross Domestic…

A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: Q.1 Explain the following identity: C + G + I + NX ≡ Y ≡ YD + (TA − TR) ≡ C + S + (TA − TR) 2.How…

A: A way of measuring the economic wellbeing of a nation, the GDP is the amalgamation of all the values…

Q: compare adam smiths view of a nations wealth with that of modern economists who rely on gross…

A: A capitalist economy is a free market economy where the market forces of demand and supply determine…

Q: Write down the growth accounting equation. Explain each component briefly.

A: Growth accounting explains the different factors contribution towards the growth. Change in the…

Q: I. Nominal GDP and Nominal GDP per capita can best measure the quality of living and standard of…

A: The measure that depicts the final value of goods and services that are being produced in an economy…

Q: As nations become more prosperous, the contribution of agriculture to gross domestic product (GDP)…

A: Economics as a subject is used to understand how efficient allocation of resources can lead to…

Q: Use the data below to calculate GDP for a given country.

A: With the given data we can calculate GDP by using expenditure method or outlay method.

Q: Which of the following is the formula for calculating the real GDP per capita? a. Total national…

A: Real GDP is the value of goods and services measured using constant sets of prices.

Q: If firms import physical capital goods into a country, how will GDP change in the short run? And in…

A: In an economy, imports is one of the components of GDP as it is recorded and considered when…

Q: What is the Measure of per Capital Real GDP so important? If an economist judges the welfare of the…

A: Per capita real GDP is important because it measures the average income of people.

Q: A capital good is considered as intermediate good and, thus excluded from calculating GDP. a. False…

A: GDP includes the final goods and services produced within the country. It does not include the…

Q: COMPONENT R millions Consumption expenditure (C) 9 000 Investment (I) 6 500 Government spending (G)…

A: We have the following information- COMPONENT R millions Consumption expenditure (C) 9 000…

Q: Explain the following identity: C + G + I + NX ≡ Y ≡ YD + (TA − TR) ≡ C + S + (TA − TR) 2. How…

A: There are three main methods for calculating GDP. The expenditure approach, production approach, and…

Q: Explain the following identity: C + G + I + NX ≡ Y ≡ YD + (TA − TR) ≡ C + S + (TA − TR) How is…

A: "Gross domestic product", or GDP, is the total value of all finished services and goods generated…

Q: Consider the following open economy. Real GDP 1,000 Consumption 774 Government Expenditures 197…

A: Total savings in an economy is the sum of the private savings and the government savings where…

Q: = Country A produces GDP according to the following equation: GDP 5K. The country has a depreciation…

Q: Explain the following identity: C + G + I + NX ≡ Y ≡ YD + (TA − TR) ≡ C + S + (TA − TR) How is…

A: In this given identity C + G + I + NX ≡ Y ≡ YD + (TA − TR) ≡ C + S + (TA − TR) C is household…

Q: What is the value added at each stage stage 1 stage 2 stage3 stage 4 how much does this…

A: Gross domestic product refers to the market value of all final goods and services produced in an…

Q: From the World's Largest Economies 2016 visual, we can conclude which of the following to be the…

A: GDP refers to the gross domestic product which is the measurement of all the final commodities and…

Q: Requires: In your OWN WORDS, discuss the following terminologies & concepts: Internal Rate of…

A: The gross national product (GNP) is a calculation of the total value of all final products and…

Q: At what prices does the trend of the gross national product is calculated, in order to measure the…

A: In an economy, the gross national product explains the total output or income generated in a…

Q: ) GDP is a better indicator of economic growth and welfare than GNP because a) indicates income…

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

Q: If both the prices and the quantities of all final goods and services produced in a nation doubled…

A: Gross domestic product(GDP) measures the money value of all final goods and services produced in an…

Q: If nominal GDP is 42,000 and real GDP is 40,000 what is the GDP deflator? A.) 1.05 B.) 200…

A: Nominal GDP measures the value of goods and services measured in current year prices while real GDP…

Q: Explain why GDP per capita comparisons among nations are not a perfect measure of differences in…

A: Standard of living is the level of comfort, necessities, material goods, and wealth available to the…

Q: GDP Growth Rate 4 3 1 2015 2016 2017 2018 2019 -1 -2 -3 -4 Brazil 1Argentina 2.

A: The GDP growth rate for Brazil: In the subsequent year of 2015 and 2016, brazil saw degrowth or…

Q: Productivity is defined as the quantity of a. labor required to produce a nation’s GDP. b.…

A: GDP is the market value of final goods and services produced by an economy during a given period of…

Q: C + G + I + NX ≡ Y ≡ YD + (TA − TR) ≡ C + S + (TA − TR) How is the above identity be used to…

A: The given identity is the macroeconomic identity which conveys the basic fact that the aggregate…

Q: Explain the two sources for potential GDP growth words and diagrams

A: GDP is a proportion of the worth of the merchandise in goods and administrations created in the…

Q: ‘GDP is the most commonly used measure of output, but it leaves some things out.’ Based on the above…

A: Macroeconomics is a sub-part of economics that is used to understand, the policies and fiscal…

Q: Country A produces GDP according to the following equation: GDP = 5 K. The country has a savings…

A: Steady state refers to state where economic variable in per capita term, no longer changes.

Q: The data below are from the economies of Ishgandar and Nonburmia. Ishgandar Nonburmia…

A: Production possibilities curve shows different combinations of two goods that can be produced with…

Q: Why could calculating GDP each year using current prices overstate or understate changes in actual…

A: Gross domestic product is the measurement of the total output generated in a specific year in an…

Q: From the given figures below, calculate: A. Gross Private Domestic Investment B. Net Exports C.…

A: The national income is a parameter to gauge or estimate the efforts put by the residents during a…

Q: Case: Suppose you are watching a news report with a friend. The news report points out that a…

A: Answer There are many kinds of productions that are not generally included in GDP calculation both…

Q: Which of these statements is not true? a. GDP only measures final outputs bought and sold b. GDP in…

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

Q: try,

A: Gross Domestic Product is the monetary value of all services and finished goods being made within a…

Q: discuss why do national income and personal income differ, what happened during economics growth

A: Personal income is the total of all actual earnings received by an individual or household during a…

Q: Could a country experience a fall in population and a rise ib real gdp at the same time

A: Real GDP is the ratio of Nominal GDP to GDP deflator.

Q: Country A produces GDP according to the following equation: GDP = 5√K. The country has a savings…

Concept explainers

Comparative Advantage and Absolute Advantage Analysis

The theory of absolute advantage was given by Adam Smith in the year 1776.

Question

i need the answer quickly

Q.1
I.
Explain the following identity:
C+G+I+NX= Y = YD+ (TA – TR) = C + S+ (TA – TR)
II.
How is the above identity be used to measure GDP in Pakistan?
III.
What are the disadvantages of using the above identity to measure economic
development?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Answer the question completely. 1. Critics charge that GNP is grossly inadequate in so far as measuring national economic welfare is concerned, They assert that as a goal, it distorts national priorities, does not improve or may even worsen the distribution of income and irreparably damage the environment. Is this true? In what aspects can GNP be a measure of economic welfare and performance?
The manufacturing sector is considered as one of the major sources of substantial employment generation in both developed and developing economies. But in Zambia, its contribution is still less than the highest standard set at 2014 when it accounted for 223 681 jobs of which 7.1 percent of these were formal jobs. In total, manufacturing sector jobs had represented 3.8 percent of the 5.9 million total employed population (Central Statistical Office, 2016). As a Student of Econometrics II, you are tasked to establish the determinants of the growth of the manufacturing sector in Zambia.a) Mention four relevant variables would you include in the model.b) Suppose you collect time series data on the proposed variables, explain the steps that you would take to finally decide which model you would run. Note: Explanation must be within ten (10) sentences.
Distinguish between the following concepts as they apply to Elements of Macroeconomics. Give examples to support your answers a. GDP Deflator and Consumer Price Indexb. GDP at Market Price and GDP at Factor Co
Q.1 Explain the following identity: C + G + I + NX ≡ Y ≡ YD + (TA − TR) ≡ C + S + (TA − TR) 2.How is the above identity be used to measure GDP in Pakistan?
What’s special about the numeraire in an economy? A. It’s used to calculate constant growth rate in per-capital GDP B. It’s only used in the income approach of measuring GDP C. It determines the level of factor productivity in the Cobb-Douglas function D. Its value is used to measure the prices of all other goods and services
Answer the question completely and correctly. 1. Critics charge that GNP is grossly inadequate in so far as measuring national economic welfare is concerned, They assert that as a goal, it distorts national priorities, does not improve or may even worsen the distribution of income and irreparably damage the environment. Is this true? In what aspects can GNP be a measure of economic welfare and performance?
The income based GDP formula states that GDP is the sum of wages, rent, and interest, and in a given economy. A) commodities b) profits c)taxes d)tarrifs
Use the data below to calculate the following: I. Personal Income II. Disposable Income III. Net National Income at basic price Compensation of employees 2000 interest 500 rent 700 Profits 800 Employer’s contribution to social security 20 Consumption of fixed capital 100 Net indirect tax 250 Net exports 70 Net factor income to abroad 150 Mixed income of self employed 1500 Net current transfers from the rest of the world 250 Current transfers from the government 100 Subsidies 25
If the GDP deflator is equal to 100, then for that year nominal GDP is equal to real GDP. True or False? explain
In 2019, the population increases, and labor hours supplied increase by 10 at each real wage rate. What are the equilibrium real wage rate, labor productivity, and potential GDP in 2019? In 2019, the population increases, and labor hours supplied increase by 10 at each real wage rate. Does the standard of living in this economy increase in 2019? Explain why or why not. Suppose the following data describe a nation's population: Year 1 Year 2 Population 300 million 305 million Labor force 150 million 160 million Unemployed 7 million 7.2 million a. What is the unemployment rate in each year? How has the number of unemployed changed from year 1 to year 2 (must give the specific amount of change)? How is this apparent discrepancy between (a) and (b) explained?
Identify the following variables as more variable than GDP or less variable than GDP: (1) consumption, (2) investment, and (3) unemployment.
The participation of women in the Gambian labor force has risen dramatically since 2000. How do you think this rise affected GDP? Now imagine a measure of well-being that includes time spent working in the home and taking leisure. How would the change in this measure of well-being compare to the change in GDP? Can you think of other aspects of well-being that are associated with the rise in women’s labor-force participation? Would it be practical to construct a measure of well-being that includes these aspects?