Suppose that an auto company owned entirely by US citizens opens a new factory in Canada. a) What sort of foreign investment would this represent? Explain.  b) What would be the effect of this investment on Canadian GDP? would the effect of this investment on Canadian GNP and US GNP be larger or smaller? Hints: differences between GDP and GNP.

Q: How might the following events affect the real gross domestic product (GDP) and what would happen to…

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

Q: According to many economists, production that occurs in the underground economy   a. is accurately…

A: Underground economy: It is the part of the total economy which is built from illicit activities like…

Q: Which of the following is NOT a component of the expenditures approach to calculating GDP? Select…

A: Expenditure Approach is a method of calculating the Gross Domestic Product (GDP) of the country. In…

Q: The Government of Bangladesh plans to administer 280 million doses of COVID-19 vaccine in the coming…

A: Answer-

Q: Which of the following are included in the year’s GDP? which are excluded? Explain your answers The…

A: GDP is the total market value of all the final goods produced in an economy. It measures the…

Q: For the purpose of calculating GDP, investment is spending on real estate and financial assets such…

A: GDP is the sum total of market value of final goods and services produced in a country during a…

Q: All of the following are components of the expenditure approach to measuring GDP except from: Group…

A: The correct option is : Car dealer in Iowa being paid his monthly salary

Q: Use the data to calculate nominal Canadian GDP using the spending approach for both 2016 and 2017.…

A: For 2016,Nominal GDP=Consumption+Investment+Government Spending+(Export-Import)Nominal…

Q: Which of the following is wrong? Select one: a. In the expenditures approach to GDP we subtract…

A: a) This statement is considered true as imports are deducted in the expenditure approach as they are…

Q: 20. If both the production of goods and services increase and prices rise, then the change in…

A: Answer: option d Explanation: If the production of goods and services increases and the prices rise…

Q: A criticism of gross domestic product (GDP) is that it can both underestimate and overestimate…

A: The gross domestic product refers to the total amount of all the final goods and services produced…

Q: Are the following included or not in the measurement of Gross Domestic Product (GDP)? Explain your…

A: In an economy, any output that is generated in thate specfiic year and used for a final consumption…

Q: Given the following: consumption = 400, investment = 100, government expenditure = 50 and net export…

A: GDP = Consumption + Investment + Government expenditure + Net export

Q: Fluctuation of savings and investment rates impact on GDP of any macroeconomics. Comment with the…

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

Q: In Hong Kong as in much of the world, National Income and GDP data are revised from time to time as…

A: Answer: Part (a). If consumer bought $8 billion more furniture than previously thought then the…

Q: How do each of the following transactions affect Canada’s GDP? Unless otherwise indicated, assume…

A: Gross Domestic Product is the sum total of market value of final goods and services produced in a…

Q: Suppose that a farmer grows wheat, which she sells to a miller for $10. The miller turns the wheat…

A: 1) Farmer sold wheat to miller for= $10 Miller sell flour to baker for= $55 Baker sells bread to…

Q: The following table shows data on consumption, investments, exports, imports, and government…

A: Consumption is the total household expenditure on final good and services. Investment is the…

Q: Use data below to answer the following questions: Consumption expenditures $300 billion, Government…

A: Answer: Given, Consumption expenditure=$300 billionGovernment purchases=$50 billionTaxes=$40…

Q: Which of the following would NOT be directly included in Australia's GDP using the expenditure…

A: GDP includes all the consumption expenditure, investment expenditure, government expenditure and net…

Q: You purchase a Tesla Model 3. What is the impact to the different components of the U.S. GDP and the…

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

Q: Identify the immediate effect of each of the following events on U.S. GDP and its components. •…

A: A) When James is receiving a social security check:- It is not included in GDP as it is a part of…

Q: Consider each of the following items. Should it be counted as part of U.S. GDP? If so, in which…

A: GIVEN   Consider each of the following items. Should it be counted as part of U.S. GDP

Q: The following provides data for an economy in a certain year Consumption expenditures $1,000 $600…

A: a) Trade Deficit:- The term "trade deficit" refers to the scenario where the import of a nation is…

Q: Suppose that a farmer grows wheat, which she sells to a miller for $10. The miller turns the wheat…

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

Q: What is the difference between gross private domestic investment and net private domestic…

A: Domestic investment measures the total investment that the firms or the business invest in projects…

Q: AWhich of the following expenditures associated with the production of a new Tesla Model 3 will be…

A: GDP refers to gross domestic product which is sum of value of all goods and services produced in a…

Q: For a hypothetical economy, if Nominal GDP (measured in billions of current dollars) is $5,465 and…

A: Import is the process of purchasing the products and services manufactured in another country.

Q: Use the following composition of expenditure for the economy of a country named the Republic of…

A: Expenditure on GDP is always equal to GDP at market prices. It indicates the total value of spending…

Q: Paul, a US citizen, buys $500 worth of illegal drugs while on vacation in Amsterdam. Upon his…

A: The correct option is  15000

Q: Jane spends $1,200 on a used computer. How will this calculation effect GDP?     A.) Consumption…

A: Gross domestic product (GDP) measures the market value of final goods and services produced during a…

Q: Which spending category of GDP does each of the following transactions count in? Please enter the…

A: suppose,C= Consumption.I= Investment.G= Government spending.NX= Net export.N=None. We can enter the…

Q: ssume that the total output of goods and services is held constant and the price level increases.…

A: Economic Growth is measured by GDP in Nominal or real terms. Nominal GDP is the market value of all…

Q: Which of the following is true about the components of GDP?   When we buy stocks, this is economic…

A: GDP is defined as the market prices of all goods and services produced in a domestic country in a…

Q: Identify whether or not each of the following transactions would be included in GDP, and if so,…

A: GDP refers to the gross domestic product of the economy which measures the total money value of all…

Q: Would a temporary investment tax credit for businesses or a temporary income tax cut for individuals…

A: Temporary income tax cut would influence GDP greatly.

Q: Suppose that the economy has consumption $90, investment $50, government purchases $30, imports $20,…

A: Gross domestic product (GDP) is the standard measure of the value added created through the…

Q: Which of the following will not cause an increase in equilibrium GDP? a) an increase in government…

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

Q: Determine if the following would be counted in GDP and identify the category under which it would…

A: GDP by expenditure method = Household consumption expenditure + Gross investment + Government…

Q: Suppose that an Al Khaleej Food company owned entirely by Emirati Business Group opens a new…

A: 1. If an Al Khaleej Food company owned entirely by Emirati Business Group opens a new Restaurants…

Q: When the Japanese car maker Toyota expands one of its car factories in the United States, What is…

A: The economies around the world work, or operate with the motive of increasing their production, as…

Q: If the United States introduces universal child care, what will likely happen to GDP? Explain fully…

A: Universal child care is the provision of child care facilities like health care, education,…

Q: The following table shows data on personal consumption expenditures, gross private domestic…

A: Consumption, C=$9.845 billions Investment, I=$1.549.3 billions Goods and services, G=$2967.2…

Factor Models

Many attributes might be related to an asset's risk, including market capitalization (size), dividend yield, growth, price-earnings ratio, etc. The use of these traditional descriptors, however, presents a few problems: