The University of Chicago, a privately-owned school, is currently building a new hospital.  This will be classified in U.S. GDP as ________, because ____________. Group of answer choices A.consumption; it will provide medical services to consumers   B.net exports; most construction workers are foreigners   C.government purchases; the construction constitutes government expenditure   D.investment; it increases the capital stock

Q: Use the following data of a hypothetical economy. Calculate the net Government Purchases $15…

A: Here we calculate the GDP for calculating the NDP , GDP is the production of final goods and…

Q: What components of GDP (consumption, investment, government spending, net exports), if any, would…

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

Q: Changes in business inventory will be calculated in GDP under which of the following categories

A: GDP = C + I + G + X - M Where C = personal consumption expenditure I = Gross private domestic…

Q: Part a) Fill in the rest of the table. Part b) Calculate the growth of real GDP from 2012 to 2013…

A: Nominal GDP is the market value of goods and services produced in an economy while Real GDP is the…

Q: 1.3 Read the following extract and answer questions 1.3-1.5. South Africa's economy grew by 1.1% in…

A: 1 - Option B Data Revision Due to changing the way GDP was being calculated by using the annualising…

Q: d. In Crusoe’s final year on the island, he produces the same as in every other year (he’s a…

A: d. As always, GDP is £4,400. But now C 5 £4007, I 5 £400, and X 5 2£7.Note that all of the washed-up…

Q: Good Y 100 120 140 $0.60 $0.60 $1.00 a. Assuming that this economy produces only two goods Good X…

A: Formulas: Nominal GDP = Price of all goods in current year + Quantity of all goods in current year…

Q: 1.3 Read the following extract and answer questions 1.3-1.5. South Africa’s economy grew by 1.1% in…

A: 1 - Option B Data Revision Annualizing method could be misleading during phases of economic…

Q: Thoroughly explain the components of GDP and relate those components to the Circular Flow model with…

A: The components of GDP are:1. Consumption expenditure2. Investment expenditure3. Government…

Q: Explain two (2) limitations of GDP as an indicator of performance and social welfare of an economy

A: Gross domestic product (GDP) is the total monetary or market value of all the finished goods and…

Q: 1.3 Read the following extract and answer questions 1.3-1.5. South Africa's economy grew by 1.1% in…

A: 1 . Option B - Data Revision Calculating GDP by annualising method is not the right approach during…

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: Hi please assist with this 1.3 questions 1.3-1.5. South Africa’s economy grew by 1.1% in the first…

A: 1 - Option B Data Revision Annualising method of calculating GDP is not the right approach during…

Q: urables goods account.

A: 1) True statement 2) True Statement 3) False statement

Q: The annual output and prices of a three-good economy are shown in the table below. Quantity of Goods…

A: Nominal GDP: a)   NGDPyear 1=Priceyear 1×Quantityyear 1=($4×3)+($3×1)+($2×3)=$12+$3+$6=$21 Economy's…

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: Given the following: consumption = 450, investment = 100, government expenditure = 50 and net export…

A: Country's GDP is calculated by the following formula,  = Consumption + investment + government…

Q: The investment category of GDP measures three different types of expenditures. What are they? Why is…

A: Expenditure applies to payments made for commodities or services or to obligations accrued in return…

Q: Place the transactions below in their appropriate categories in the GDP and calculate the overall…

A: Hi! Thank you for the question, As per the honor code, we are allowed to answer three sub-parts at a…

Q: Gilberto and Juanita Ivanov live in Swarthmore, PA. Juanita's father, Lorenzo, lives in Sweden. For…

A: GDP is the total value of goods and services produced by a country’s economy during a given period…

Q: The following table shows the data for a hypothetical economy in a specific year. All figures are in…

A: Country's GDP is given as the value of final goods and services produced in a year within the…

Q: Manuel and Poornima White live in Swarthmore, PA. Their son, Shen, owns his own plumbing business.…

A: Components of GDP:- C= Consumption I= Investment G= Government spending X= Export M= Import

Q: Given the following: consumption = 700, investment = 300, government expenditure = 150 and net…

A: The economy's GDP is calculated by the following formula, GDP = Consumption + Investment +…

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: Given the following: consumption = 300, investment = 150, government expenditure = 50 and net export…

A: GDP = consumption + investment + government expenditure + net exports

Q: (Expenditure approach to GDP). You have the following annual information about a hypothetical…

A: GDP = C + Ip + G + X - M, where Ip: Gross investment and NX = X - M Net investment = Ip -…

Q: Briefly discuss five reasons why a rise in real Gross Domestic Product within a country over time…

A: The entire monetary or market worth of all finished products and services produced inside a country…

Q: Which of the following is a way to compute real GDP?     a. add up the market values of all final…

A: The value of all goods and services generated by an economy in a given year (expressed in base-year…

Q: 1.3 Read the following extract and answer questions 1.3-1.5. South Africa’s economy grew by 1.1% in…

A: 1 - Option B By changing the way GDP was calculated, it could be misleading as annualising method…

Q: For each of the following transactions that occur in their lives, identify whether it is included in…

A: The expenditure approach to calculating gross domestic product(GDP) takes into account the sum of…

Q: Economic activities in a three-sector hypothetical economy for 2020 are given below. Compute GDP…

A: Number of small cars produced by Sigma Auto= 2000 Selling price= $6000 each Number of truck produced…

Q: 1.Real GDP is a more perfect measure of an economy's production than nominal GDP. Explain 2.…

A: Economists are the people who make theories and models on economic behavior using presumptions, past…

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: Modern Principles of Economics Fourth Edition Question 17 PLEASE ANSWER PART D AND E  Let’s figure…

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

Q: Modern Principles of Economics Fourth Edition Question 17 Let’s figure out GDP for Robinson Crusoe.…

A: Note:- Since we can only answer up to three subparts, we'll answer the first three. Please repost…

Q: The following table shows the data for a hypothetical economy in a specific year. All figures are in…

A: To calculate GDP by expenditure method: GDP=personal consumption expenditure+gross…

Q: Q2 In each of the following cases, determine the effect of each case on GDP and its components in…

A: We know that Aggregate Demand is the sum total of consumption expenditure, investment expenditure,…

Q: Gilberto and Juanita Jones live in Svarthmore, PA. Juanita's father, Lorenzo, lives in Sweden. For…

A: Below Table shows whether the given statement is under the part of consumption, investment,…

Q: A final good or service is something that retains no value when factored into the GDP is not a…

A: Answer: Option B (is not a component of another good or service) Explanation: A final good or…

Q: Suppose that an auto company owned entirely by US citizens opens a new factory in Canada. a) What…

A: GDP and GNP are measures used to assess the health of the economy. Its often used to compare the…

Q: Which definition best describes real GDP? a)the production of goods and services valued at current…

A: The Gross Domestic Product is the summation of the money value of all the final goods and services…

Q: a. Calculate the GDP using expenditure approach: b. Calculate the GDP using income approach: C.…

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