Answered: Suppose that real domestic output in an…

Suppose that real domestic output in an economy is 240 units, the quantity of inputs is 12, and the price of each input is $4. The level of productivity is Multiple Cholce 20. 240. 12. 24.

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter7: Macroeconomic Measurements, Part Ii: Gdp And Real Gdp

Section: Chapter Questions

Problem 8QP

See similar textbooks

Related questions

Q: the percentage change in the cost of a fixed basket of goods from month to month. the percentage…

A: Inflation rate is the rate of increase in prices of goods and services that are sold in the economy.…

Q: Classify each of the following items as a final good or service or an intermediate good or service…

A: The gross domestic product(GDP) refers to the market value of all the final commodities produced…

Q: Q2 MCQ . Final goods or services used to compute GDP refer to: the sum of all wages paid to…

A: GDP is a macroeconomic measure used in the computation of the aggregate total output produced in an…

Q: The product approach of national income accounting measures the income received by firm owners. the…

A: The value of products and services generated by a country throughout a financial year is referred to…

Q: Refer to the graph, a shift from AS3 to AS2 might be caused by an increase in: AS3 AS, AS2 Real…

A: The relationship between the price level and the output potential of a commodity/firm is measured…

Q: AS3 AS1 AS2 Real Domestic Output, GDP In the diagram, a shift from AS1 to AS3 might be caused by…

A: The decrease in Aggregate supply or leftward shift in AS curve will be caused by any factors that…

Q: Final goods or services used to corpute GDP refer to the value of outstanding shares of stock of…

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

Q: Suppose that real domestic output in an economy is 100 units, the quanity of inputs is 10, and the…

A: Cost of Production is the spending that is incurred on inputs like labor, capital, and other raw…

Q: The following is data provided for the year 2020: Capital consumption allowance $119.5 Wages 855.7…

A: National income refers to the value of commodities and services produced by a country during a…

Q: Consider two tractors manufactured by John Deere in Illinois in 2019 . During 2019, John Deere sells…

A: Total tractor sold=2 Price=30,000+22,000=52,000

Q: Suppose that real domestic output in an economy is 20 units, the quantity of inputs is 2, and the…

A: Productivity is defined as the output generated by one unit of input of production. In mathematical…

Q: Changes in nominal GDP are caused by price changes and changes in real GDP are caused by quantity…

A: Inflation is defined as the rise in the average price level of commodities and services in the…

Q: A farmer grows wheat, which she sells to a miller for $90. The miller turns the wheat into flour,…

A: A measure that tends to add up all of the money amounts in a given span of time which is being spent…

Q: During 2020, Nation Z produced only 10 goods. Goods A, B C, D and E are intermediate goods. Goods F,…

A: Nominal GDP is the total value of the goods and services produced in the country's economy over a…

Q: You are given the following GDP data (in millions of dollars) for Canada for a give GDP: 1,720,748…

A: Gross domestic product is a monetary measure of the market value of all the services and final goods…

Q: IV. Net National Income at V. Personal Income VI. Disposable Income

A: We need to calculate, 4) Net National Income at a Basic Price 5) Personal Income 6) Disposable…

Q: Assume that nominal income increases by 5% and the price level increases by 3%, which of the…

A: Nominal income does not take into account inflation.

Q: Determine whether each description refers to nominal gross domestic product (GDP) or real GDP. A…

A: Solution - Definition GDP - GDP is a measure to calculate total output of a country in a year .…

Q: Please draw a change that raises the final incomes of the poorest households, but doesn't raise…

A: To raise the final income of the poorest without changing the spending, the new policy line must cut…

Q: 106. Which of these would be included in Canadian consumption? A French resident buys a new house in…

A: Answer - Need to find - Which of these would be included in the Canadian consumption Evaluating the…

Q: discuss possible variations in purchasing power due to price and income changes

A: The consumer or the individual would result in consuming various amounts of goods and services given…

Q: Assume an economy with two firms. Firm A produces wheat and firm B produces bread. In a given year,…

A: * SOLUTION :- Given that , The Gross domestic product refers to the value of all the goods and…

Q: In a given year, suppose a company spends $100 million on intermediate goods and $200 million on…

A: The production of the final goods and services passes through various stages of the production. At…

Q: In a given year, suppose a company spends $100 million on intermediate goods and $200 million on…

A: In business, total value added is calculated by tabulating the unit value added per each unit of…

Q: Actual GDP in a country is $100 billion and potential GDP is $150 billion. Prices are virtually…

A: According to question, The current GDP is $100 billion, while the potential GDP is $150 billion.…

Q: Intermediate goods and services are one of the largest components of the expenditure approach to…

A: GDP refers to goods and services produced in the economy. The more the goods and services are…

Q: The consumer price index measures ) the cost of all goods and services produced in the U.S. economy.…

A: The consumer price index (CPI) measures the change in prices in a basket of goods and services, such…

Q: In the calculation of national income, all of these items are added, except _____. a. Imputed rent…

A: National income refers to the market value of all the goods and services produced in the country at…

Q: Item RM (million) 2) The table above shows the transaction in Pinkland last year: a) Calculate…

A: The income approach is one of the approaches used to calculate GDP.

Q: Each year, Johan typically does all his own landscaping and yard work. He spends $204 per year on…

Q: Assume that over the last 10 years the gross domestic product of Econostan increased by 25% while…

A: Gross domestic product(GDP) of a country refers to the market/monetary value/worth of all the goods…

Q: Find the value of output if the given sales is $80 and the change in stock is $15??? National…

A: Generally in the given question, Sales amount is = $80 Change in the stock = $15 Value of output…

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: GDP at market prices R397bn Net primary income payments to the rest of the world R37bn Indirect…

A: The gross domestic product of an economy is the monetary value of all final goods and services…

Q: Real national income is national income measured in constant (base-period) dollars. It changes only…

A: National income is the income which is earned by the citizens of the country in a particular…

Q: Gross Investment $ 18 National Income 100 Net Exports 2 Personal Income 85 Personal Consumption…

A: Given:National Income = $100 billiomNet Domestic Product=$105 billion

Q: A farmer grows wheat, which she sells to a miller for $90. The miller turns the wheat into flour,…

A: Answer is given below

Q: Expenditure (in thousands) Component Social Security payments $290 Depreciation $60 Gross private…

A: here we calculate the Value of GNP ( Gross National Product) , by calculating the GDP ( Gross…

Q: Suppose a small economy produces only smart TVs. In year one, 100,000 TVs are produced and sold at a…

A: Nominal GDP in year 1 = 100,000 × $1200 = $ 120,000,000 Nominal GDP in year 2 = 75,000 × $1200 = $…

Q: A firm's value added is a. the revenue it receives for its output, minus the cost of all the…

A: Here, Option A is correct. the revenue it receives for its output, minus the cost of all the…

Q: Consumption Gross Government Real GDP (after taxes) Investment Net Exports Purchases $0 -$20 $10 $+5…

A: The Gap Between real Gross domestic production and GDP at full employment is known as the…

Q: Q22 MCQ Inflation is an increase in: a) the price of one item b) the average price level c) the…

A: Macroeconomics: The term macroeconomics refers to the situation of economic and scarcity problems…

Q: Suppose an economy has only two sectors: Goods and Services. Each year, Goods sells 75% of its…

A: Let the price of the total annual output of the good be Pg Let the price of the total annual output…

Q: If exports exceed imports does not make any sense net exports is negative net exports is positive…

A: The answer is - Option 3: Net export is positive

Q: Assume that this economy produces only two goods Good X and Good Y. If year 1 is the base year, the…

A: Formulas: GDP Deflator = (Nominal GDP/Real GDP) * 100 Nominal GDP = Price of goods in current year *…

Q: Suppose that real domestic output in an economy is 20 units, the quanity of inputs is 2, and the…

A: Given Real domestic output in an economy is 20 units. The quantity of inputs is 2. The price of…

Question

I need help with solving the attached please

Suppose that real domestic output in an economy is 240 units, the quantity of inputs is 12, and the price of each input is $4. The level of productivity is
Multiple Cholce
20.
240
12.
24.

Expert Solution

This question has been solved!

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

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Trending now

This is a popular solution!

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

Suppose that real domestic output in an economy is 20 units, the quanity of inputs is 2, and the price of each input is $4. The level of productivity is?
Find the value of output if the given sales is $80 and the change in stock is $15??? National income
Which component of national expenditure will be affected when a company buys a new AC for its manager’s office? The GDP deflator is a price index that does not have a base period. Evaluate the reliability of estimating inflation from a price index that does not have a base period.
In an economy, the total expenditure for a market basket of goods in year 1 ( the base year) was $4000. In year 2, the total expenditure for the same basket of goods was $ 4000. What was the price index for the economy in year 1? Year 2?
Consider a macroeconomy where the current population is 800 thousand people. Gross domestic private investment is constant $2500 million while consumer expenditure is described by the equation: C = 580+ 0.8DI. The government is fairly active, with a total expenditure of $2000 million and net taxes of $2550 million. Further investigation of the macroeconomy reveals that imports are constant at $3000 million while exports are constant at $2500 million. Currently, the overall price level (GDP deflator) is 118 and the potential GDP level is $13.5 billion. What is the current equilibrium level of real GDP? (report your answer at 2 decimal places and in millions of dollars) 1. What is the current equilibrium level of real GDP 2. what is the current real GDP per capita? 3. what is the value gap?
In the city of Paradise, government survey takers determine that typical family expenditures each month in the year designated as the base year are as follows: 20 pizzas at $10 each Rent of apartment, $600 per month Gasoline and car maintenance, $100 Phone service, $50 In the year following the base year, the survey taker determine that pizzas have risen to $11 each, apartment rent is $640, gasoline and maintenance has risen to $120, and phone service has dropped in price to $40. a). Find the CPI in the subsequent year and the rate of inflation between the base year and the subsequent year. b). The family's nominal income rose by 5% between the base year and the subsequent year. Is the family worse off or better off in terms of what its income is about to buy?
With reference to the table given above, calculate: i. Gross Domestic Product at factor cost ii. Gross National Product at factor cost
The nation of Kona cultivates coffee beans and cassava, from which all their consumer goods are produced. (a) Calculate the cost of the market basket of goods in the table in 20102010 and in 20152015. Show your work. (b) Use 20102010 as the base year to calculate the price indices for 20102010 and 20152015 for the market basket of goods in the table. Show your work. (c) In order for a citizen of Kona to maintain the same standard of living between 20102010 and 20152015, what percentage change in nominal income would be needed? Explain.
Assume that nominal income increases by 5% and the price level increases by 3%, which of the following is true? Real GDP must have decreased. The impact on real GDP is indeterminate. The percentage increase in real GDP must exceed the percentage increase in the price level. Real GDP increased by approximately 2%. If the price level increased by 3%, nominal GDP must increase by less than 3%, not by 5%.
America's gross domestic product-the total value of all goods and services produced here-is volatile because of immigrant workers. unchanged under the impact of immigrant workers. larger because of immigrant workers. smaller because of immigrant workers.
Find the value of national income of Austria if the net domestic product at factor cost in Austria is $96 million and net factor income from abroad is $66 million