Answered: Suppose the GDP for a country is $0.…

Suppose the GDP for a country is $0. Does this mean that there was no productive activity in the country? Explain your answer

Macroeconomics

13th Edition

ISBN:9781337617390

Author:Roger A. Arnold

Publisher:Roger A. Arnold

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

Section7.1: Gross Domestic Product

Problem 2ST

See similar textbooks

Related questions

Q: which of the below statements about the U.S. GDP do you think is INCORRECT? Group of answer…

A: * ANSWER :- The OPTION C is answer

Q: Explain briefly. Growth Rate of Gross National Product (GNP)

A: Gross domestic product (GDP) is the all out financial or market worth of the relative multitude of…

Q: In measuring GDP, which of the following is NOT a factor payment? a. Government's transfers payment…

A: Factor payment approach to calculate GDP includes all factor payments earned by households, that is…

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

Q: What are typical GDP patterns for a high-income economy like the United States in the long run and…

A: Gross Domestic Product (GDP) is denied as the total nominal value of all complete commodities or…

Q: What is the effect that changes in business taxes, personal income, and transfer payments have on a…

A: GDP is the measure of the total value of services and goods produced within an economy during a…

Q: How national income can be measured in economics? Explain briefly:

Q: What is natural GDP

A: GDP(gross domestic product): It is the sum of all the final goods and services that are produced in…

Q: Economic In an economy, 75 per cent of the increase in income is spent on consumption. Investment is…

A: here we can find the how much income increases and how much consumption expenditure increases which…

Q: Based on Gross Domestic Product, discuss how increasing the labour force participation rate of…

A: The total amount of products and services produced within an economy is referred to as the gross…

Q: In 1988 the value of real GDP was $8,701.23 billion and the population was 257.79 million. Calculate…

A: Real GDP is used to calculate the real growth of production lacking any distorting consequence from…

Q: True or false: GDP is better indicator of a country as well because it gives a better indication…

A: GDP is the production of goods and services during an accounting year.

Q: India has a higher GDP than Austria. Explain, using the concept of per capita GDP, why Austria…

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

Q: what is the nominal GDP per capita for year 2019? refer to the table

A: As economies and societies developed, the study of economics got more complicated. Hence, as a…

Q: Government Purchases 11 Consumption [ 60 Gross Investment 16 Consumption…

A: Gross domestic product is a measure to analyze and compare the economic growth between two or more…

Q: Ethiopia has a GDP of $8 billion (measured in U.S. dollars) and a population of 55 million. Costa…

A: ANS Per capita GDP is the amount of GDP shared by each individual of the country. It is obtained by…

Q: Imagine you are a senior statistician with a national statistical agency. The economists who work…

A: Gross domestic product (GDP) refers to the entire market value of the products and services…

Q: Real per capita GDP in the United States in 2015 was approximately.

A: Real GDP is the GDP which is adjusted to the inflation

Q: If South Africa’s GDP is greater than its GNI, then the income earned by foreign owners of companies…

A: Option (A).

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

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

Q: Answer the questions given for a country that produces goods A and B and produces 2 goods according…

A: a) Real GDP for 2010: The goods of the current year is taken with the prices of the base year in…

Q: What are shortcomings of using GDP to measure the standard of living? Group of answer choices GDP…

A: GDP measures the value of goods and services produced in an economy during a specific period of…

Q: A GDP deflator less than 1 indicates that an economy has experienced:

A: GDP Deflator=Nominal GDPReal GDP=P×QPb×Q=PPb GDP deflator shows the changes in the price level. So…

Q: Why does GDP depend on productivity in the long run?

A: Gross domestic product (GDP) is the monetary value of all final goods and services produced within a…

Q: How Real GDP is measured? Explain Real GDP of the United States at present time.

A: Real GDP is the final value of goods produced in an economy in a given fiscal year. It only…

Q: The participation of women in the Gambian labor force has risen dramatically since 2000. How do you…

A: 1. The participation of women in the Gambian labor force has risen dramatically since 2000 which…

Q: In 2014, GDP was $12 million and the price of the market basket was $40. In 2020, GDP was $15…

A: In 2020 production level was higher.

Q: “The GDP of a country does provide an accurate indicator of the welfare of its citizens”

A: GDP refers to the monetary value of total output produced in the economy for a specific year. And…

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

A: In an economy, real GDP and nominal GDP has significant difference that makes the gap between these…

Q: How useful is GDP as a measure for countries' well-being and why? What other measures could be…

A: Gross Domestic Product (GDP) is referred to the well-being of the economy. GDP identifies over the…

Q: Discuss whether GDP is always reliable and accurate in reflecting economic performance of a country.…

A: GDP is that the price of all the finished merchandise and services created at intervals a country'…

Q: All of these are measures of national income, except _____. a. Net Labor force b. GDP c. Net…

A: In an economy, national income is calculated using different measures in different terms based on…

Q: 1. Find per capita GDP when the population is 100 million and GDP is $2 trillion. 2. Find per…

A: The per capita gross domestic product (GDP) is a financial measure that calculates a country's…

Q: Only three goods are produced in an economy in the following amounts: A = 9, B = 22, C = 9. The…

A: Nominal Gross Domestic Product is the total value of goods and services produced in a country during…

Q: Marijuana is sometimes estimated to be California’s largest cash crop. It is not included in…

A: Marijuana is sometimes considered to be California’s largest cash crop. It is not included in…

Q: Which of the following would not increase potential GDP? a) an increase in the size of the labour…

A: Gross domestic product is the value of all final goods and services produced in an economy over a…

Q: GDP calculation? a GDP includes earnings of both the citizens and non-citizens but are residing…

A: Gdp is the total monetary and market value of finished godds and services that produced within a…

Q: The growth rate of nominal GDP was 9.4%, and the growth rate of real GDP was 7.4% for Iceland in…

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

Q: In 2014, GDP was $12 million and the price of the market basket was $4O. In 2020, GDP was $15…

A: Both GDP and market basket increased in 2020.

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: Using the following data, calculate productivity: GDP = 100 billion %3D Employment = 1 million…

A: Labor productivity refers to the ratio of total output produced by the company with respect to the…

Q: GDP is equivalent to: Consumption Price Level Inflation Investment Real Income

A: The GDP measures the total spending on final durable goods and non-durable goods, and services…

Q: The 2017 U.S. gross domestic product (GDP) was valued at 19,390,604,000 dollars. How many Gateway…

A: Gross Domestic Product Gross domestic product estimates the value of all finished goods and services…

Q: 1 a. US GDP was 14,419 billion in 2009 and 14,964 billion in 2010. What was the percentage increase…

A: GDP: The Economic growth of a country is measured in GDP terms where GDP is the measurement of the…

Q: investories are included in GDP because a. they are considered government spending b. they will…

A: Gross Domestic Product (GDP) is the total amount of final goods and services produced and sold with…

Q: During recessions investment a. falls by a larger percentage than GDP.b. falls by about the same…

A: Recession: The recession is the temporary decline in economic activity at a period of time. During a…

Q: Between 2000 and 2017, real GDP per person grew, on average, 1% per year in the United States. Did…

A: Did this GDP growth benefit all Americans? --This GDP growth between 2000 and 2017 benefited the…

Question

Suppose the GDP for a country is $0. Does this mean that there was no productive activity in the country? Explain your answer

Definition Video Definition Overall monetary value of all the complete or final services and goods that a country can produce within its domestic boundaries in a specific period. Video

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

Introduction

VIEW

Answer

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 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

Ethiopia has a GDP of 8 billion (measured in U.S. dollars) and a population of 55 million. Costa Rica has a GDP of 9 billion (measured in U.S. dollars) and a population of 4 million. Calculate the per capita GDP for each country and identify which one is higher.
Real GDP is GDP adjusted for changes in: a. production. b. average wages. c. unemployment. d. inflation. e. interest.
Explain why per capita real gross domestic product (GDP) is a better measure of a nation's standard of living than GDP.
Suppose that real GDP in 2018 is $245,676 million and the population in 2018 is 4.8 million. Real GDP per capita in 2018 is
Gross Domestic Product ( GDP) is limited as a measure of the productivity and output of an economy because it does not measure volunteer time and other goods and services that are not paid for. True or False?
Give five reasons why GDP is the most widely used measurement in determining economic growth and development? Explain your answer.
Ethiopia has a GDP of $8 billion (measured in U.S. dollars) and a population of 55 million. Costa Rica has a GDP of $9 billion (measured in U.S. dollars) and a population of 4 million. Calculate the per capita GDP for each country and identify which one is higher.
True or false: GDP is better indicator of a country as well because it gives a better indication how much money individuals have. If the country is rich but the individuals aren’t, The country cannot be considered Wealthy.
GDP is equivalent to: Consumption Price Level Inflation Investment Real Income
A GDP deflator less than 1 indicates that an economy has experienced:
Explain the data below and Grenada gdp per capita for 2020 was $9,680, a 10.5% decline from 2019. Grenada gdp per capita for 2019 was $10,816, a 3.14% increase from 2018. Grenada gdp per capita for 2018 was $10,486, a 3.29% increase from 2017. Grenada gdp per capita for 2017 was $10,153, a 5.45% increase from 2016.
which of the below statements about the U.S. GDP do you think is INCORRECT? Group of answer choices India has a GDP that is many times the size of the GDP of Israel. Yet, of the two, Israel is considered to be the richer economy because it has a higher per capita income. GDP may give us a measure of economic prosperity, but it is at best an imperfect measure, since it does not indicate the level of happiness, leisure, literacy, life expentancy, environmental preservation, or other such factors that may improve the quality of human life. China achieved its rapid rate of GDP growth in the 21st century with little, if any, environmental depletion or pollution.