Refer to the information provided in Table 1 below to answer the questions that follow. Aggregate Income ($ billion) 0 400 800 1,200 1,600 Aggregate Consumption ($billion) 200 500 800 1,100 1,400
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- Suppose the data BELOW is for a given year from the annual Economic Report of the President. Calculate GDP using the expenditure approach (Amount in billions of dollars): Corporate profits: $ 305Depreciation: $ 479Gross private domestic investment: $716Personal taxes: $ 565Personal saving: $120Government spending: 924Imports: $ 547Exports: $ 427Personal consumption expenditures: $ 2,966Indirect business taxes: $ 370Contributions for Social Security (FICA): $ 394Transfer payments and other income: $ 967National Income DeterminationThe following figures are from data on Good Island EconomyItems $mNet private investment 940Depreciation 56Compensation of employees 2 256Corporate taxes 416Personal taxes 756Personal Consumption expenditure 4 386Government purchases 3 182Indirect business taxes minus subsidies 482Payment of factor income to the rest of the world 95Corporate profits minus dividends 56Government transfer payments and interest 243Exports 855Receipts of factor income from abroad 186Imports of goods and services 385Social insurance payments 332 Required: Use the above information to answer the followingi.) Calculate for Good Island:a. Gross private investment b. Gross Domestic product c. Gross National Product d. Net National Product e. National income f. Personal Income g. Disposable Personal IncomeShow all the necessary steps that lead to your answer. 1. Consumption $6000 (in billion) Gross Investment 1500 Indirect business taxes 300 Retained earning 244 Corporate taxes 200 Social securities taxes 900 Government purchases 1500 Export 500 Transfer payments 1000 Net interest 500 Net foreign factor income 4 Depreciation 800 Capital consumption allowance Import 100 Personal income tax 300 a. Calculate GDP from the above figures b. Calculate national income from the above figures c. Calculate personal income from the above figures d. Calculate disposable income from the above figures
- refer to figure 23.6. if aggregate income is $1,000, aggregate consumption is Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.True or False: Personal Consumption Expenditures account for about 25% of GDP. Spending on Consumer Durable Goods tends to be very stable from year to year. Sales of used goods are included in GDP at 35% of their original sale price.Refer to Table 6.3 below, use the expenditure approach to calculate gross domestic product from the following set of numbers. Consumption $5,000 Investment $1,000 Depreciation $600 Exports $500 Government purchases $1,000 Saving $1,100 Imports $700
- Indicate whether each of the following actions or impacts would increase GDPa. An individual purchases bottled water to avoid a contaminated municipal water supply.b. An individual obtains her drinking water from a water fountain at her workplace to avoid a contaminated municipal water supplyc. A homeowner pays a lawn-care company for landscaping servicesd. A neighbor agrees to help a homeowner with landscaping work in exchange for assistance with plumbing worke. A paper company employs workers to plant treesf. An environmental organization provides volunteers to plant trees10 In the expenditure approach, the total expenditures of the following entities are calculated, except a. Gross taxable incomes b. Gross private domestic investment c. Government expenditures d. Net ExportsFrom the given data calculate the investment expenditure 1) Equilibrium level of income = 5000 2) Consumption = 250
- In the economy of Kwartengland, the following figures are given for economic activity which was undertaken in 2013. All the figures are million Ghana Cedis Consumption Expenditure = 1000 + 0.8 YD Investment Spending= 600 Government Expenditure = 2450 Personal Taxes= 100 Exports= 100 Imports= 150 1. Calculate the investment and tax multipliers 2. By how much should exports change if government wishes to increase real GDP by 1000?Answer the relevant questions about an economy with the following information.a. Gross Domestic Product = 8,000b. Net External Factor Revenues = 500c. Gross Investments = 1,400D. Net Investments = 1,150to. Net Indirect Taxes = 1,200 I. What is the level of Gross National Product?ii. What is the Domestic Income level?QUESTION 1 REVISION AEB1193/E14 ( 1-2) Using the following data answer all the questions. The base year is Year Price of Guitars (RM) Quantity of Guitars Price of Drum (RM) Quantity of Drum 2000 500 100 1,000 25 2001 520 110 1, 050 30 2002 600 112 1, 075 32 Calculate nominal GDP in 2000, 2001 and 2002 Calculate real GDP in 2000, 2001 and 2002 expressed in base year Conclude your answer regarding to nominal GDP and Real GDP for each
