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Social Security payments are
a. included in
b. excluded from GDP because they do not reflect the economy's production.
c. excluded from GDP because they are not private pensions.
d. included in GDP because they represent current income.
Step by step
Solved in 2 steps
- a) Give the definition of GDP and explain what items are not included in its calculation? What is the current environment in the USA and Australia?b) Define unemployment and its measurement. What is the current environment in the USA and Australia?c) Define inflation and its measurement. What is the current environment in the USA2 Identify the one that is not considered as a limitation of GDP as a measure of welfare. a. Working time b. Over adjustment for inflation c. Environment quality d. Underground economic activitiesValue of the final goods and services produced in a given year corrected for inflation in order to measure actual production A. Nominal GDP B. Real GDP C. Net Domestic Product D. Per capita GDP
- 1. Investment is a determining factor of GDP. A decrease in the supply of available funds (i.e. a decrease in the supply of savings) is predicted to? a. Decrease interest rates, decrease investment towards physical capital and hence decrease GDP. b. Increase interest rates, increase investment towards physical capital and hence decrease GDP. c. Decrease interest rates, decrease investment towards physical capital and hence increase GDP. d. Increase interest rates, decrease investment towards physical capital and hence decrease GDP.Draw a diagram showing circular flow of national income. Explain it in detail Differentiate between GNP/GNI versus GDP and Nominal GDP Versus Real GDP Explain National Income Accounting Identity, Expenditure Approach, Production Approach and Income Approach . How are National Income Accounts measured in Pakistan?investories are included in GDP because a. they are considered government spending b. they will depricate c. they are value added to final goods d. they were produced and are sold in their final form
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- A country’s private consumption is 30, government spending is 7, investment is 5, net factor income from abroad is 2, GDP is 45. The country’s gross national disposable income is 46. Find the country’s gross national income.GDP is: a) a measure of all spending in the economy on foreign and domestic goods and services. b) the total market value of all final goods and services produced in an economy in a given year. c) the value of all output produced within an economy. d) made up of three components: consumption, investment, and government expenditureValue of the final goods and services produced in a given year valued at that year's prices A. Nominal GDP B. Real GDP C. Net Domestic Product D. Per Capita GDP
