“The total demand for goods and services consists of consumption demand, investment demand, government demand and net exports.” In terms of this statement, discuss the three sets of demand factors that can lead to economic growth.
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“The total
investment demand, government demand and net exports.” In terms of this
statement, discuss the three sets of demand factors that can lead to economic
growth.
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- Durable goods and non-durable goods comprise approximately ________ of the supply side of the GDP. 1% 20% 30% 55%Aggregate demand is an economic measurement of the total amount of demand for all finished goods and services produced in an economy. Aggregate demand is expressed as the total amount of money exchanged for those goods and services at a specific price level and point in time. Discuss how the four components of aggregate demand affect income?Describe whether each component of demand comprised GDP has become more important when calculating GDP less important or stayed the same
- The diagram that shows the income received and payments made by each sector of the economy is the: Select one: A. Income-expenditure diagram B. Income-price diagram C. Circular flow diagram D. Aggregate supply-aggregate demand diagramThe following graph shows three total expenditure lines for an economy at three different price levels. AE130 corresponds to the price level of 130; AE110 corresponds to the price level of 110; AE150 corresponds to the price level of 150. The black line (which starts in the bottom left corner) is a 45-degree line illustrating the set of points for which real GDP and total expenditure are equal. 1. What is the level of equilibrium output at a price level of 110 is what? (First picture) 2. Plot aggregate demand curve in second pictureWhich is now the largest single component of the supply side of GDP, representing over half of GDP? Durable goods Services Nondurable goods Structures
- the phrase "a sustained increase in the average level of prices for goods and services in an economy over time" describes which of the following terms?The components of aggregate demand are: The components of aggregate demand are: A. consumption, investment, government and exports B. consumption, investment, government and imports C. consumption, investment, government and net exports D. consumption, investment, and net exports, since only private expenditures are includedThe equations below describe the aggregate demand of an economy. There are neither a flow of goods and services nor capital across borders of this country. Y=C +I +G………. (1) C=Co+C(Y^d)……. (2) Y^d= Y-T…………. (3) T=t(Y) ……………. (4) I=Io+I(r)………… (5) G=Go……………... (6) M=PL(r,Y)……… (7) where Y is gross real domestic product, C is aggregate consumption expenditure by households, I is aggregate investment expenditure by firms, is government purchases of goods and services, Y^d is disposable personal income, and T is total income tax payments to government by…
- The equations below describe the aggregate demand of an economy. There are neither a flow of goods and services nor capital across borders of this country. Y=C +I +G………. (1) C=Co+C(Y^d)……. (2) Y^d= Y-T…………. (3) T=t(Y) ……………. (4) I=Io+I(r)………… (5) G=Go……………... (6) M=PL(r,Y)……… (7) where Y is gross real domestic product, C is aggregate consumption expenditure by households, I is aggregate investment expenditure by firms, is government purchases of goods and services, Y^d is disposable personal income, and T is total income tax payments to government by…Consider an economy with two firms. Firm A produces cotton and firm B produces cotton swabs. In a given year, firm A produces 100,000 pounds of cotton, sells 40,000 pounds of cotton to firm B at $3 per pound, and exports 60,000 pounds of cotton at $3 per pound. Firm A pays $100,000 in wages to consumers. Firm B produces 50,000,000 cotton swabs, and sells 40,000,000 cotton swabs to domestic consumers at $0.04 per swab, and stores 10,000,000 cotton swabs as inventory. Firm B pays consumers $40,000 in wages. In addition to the 40,000,000 cotton swabs consumers buy from firm B, consumers import and consume 5,000,000 cotton swabs, and they pay $0.06 per cotton swab. a. Calculate GDP using 1. Production/value added approach 2. Expenditure approachQ16 The quantity of real GDP supplied at different price levels is reflected by the Select one: a. total expenditure curve. b. aggregate demand curve. c. real wealth curve. d. aggregate supply curve.