Use data below to answer the following questions: Consumption expenditures $300 billion, Government purchases $50 billion Taxes $40 billion, Investment $80 billion, Social Security payments $20 billion Imports $30 billion, Exports $40 billion a) How much is GDP? b) How much are net exports? c) Social Security payments are government expenses. Should they be included in GDP? Explain.

Q: In a simple economy, suppose that all income is either compensation of employees or profits. Suppose…

A: The final value of all the services and goods produced in a particular year is known as Gross…

Q: Suppose a small economy has two income tax rates: 15% for all income up to $50,000 and 30% for any…

A: Given that, Income of Amy = $20,000Income of Betty =  $40,000Income of Charlie =  $60,000Income of…

Q: That tax increases (note: with no change in transfer payments) will change government spending, net…

A: Taxes are unintended fees placed on individuals or companies and levied by a government agency –…

Q: How has government expenditure in France throughout the period for which data is available in the…

A: The gross domestic expenditure of France is showing a downtrend.  The gross domestic expenditure was…

Q: Suppose a small economy has two income tax rates: 15% for all income up to $50,000 and 30% for any…

A: New incomes of ammy = 75% or 20,000                                         = 15,000 New incomes of…

Q: Suppose a small economy has two income tax rates: 15% for all income up to $50,000 and 30% for any…

A: National income implies the worth of labour and products created by a country during a monetary…

Q: If national income is $13 Trillion, Net Exports are -$3.5 Trillion, Investment is $2 Trillion, and…

A: GDP of a country estimates all the transactions within the boundary of the nation. It is considered…

Q: Suppose during a given year the following data is recorded for some country: $8 trillion of consumer…

A: Gross domestic product (GDP): - GDP is the market value of all final goods and services produced in…

Q: How do budget surpluses and budget deficits affect the consumption and investment components of GDP

A: The budget surplus is a situation where the revenue of government exceeds the spending of the…

Q: Define GDP. Identify the four components of GDP, used by government economists, when using the…

A: GDP: The gross domestic product i.e. GDP is the value of all finished goods and services or products…

Q: a. Using the above data, determine GDP by both the expenditures approach and the income approach.…

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

Q: The table below details the composition of an economy's GDP by spending category. Category…

A: Consumption includes spending on durable, nondurable and services. Construction of new home is a…

Q: What key components of GDP would the following affect (if any)? How would a private loan to a…

A: Answer: Introduction: GDP (gross domestic product): GDP refers to the market value of all final…

Q: Consider the following NIPA Data $4,350 $662 PCE-GOODS EXPORTS-SERVICES $2,659 CHANGES IN PRIVATE…

A: Gross domestic product, or, GDP refers to the value of all the final products that is manufactured…

Q: Show how a GH¢2,000 increase in government spending financed by a GH¢2,000 increase in taxes will…

A: Output = Consumption spending + Investment spending + Government spending + Exports - Imports.  Y =…

Q: Suppose a small economy has two income tax rates: 15% for all income up to $50,000 and 30% for any…

A: GDP computes the monetary value of final goods and services—that is, those that are purchased by the…

Q: of

A: We know that equilibrium requires: Y = AE = C + I + G C = (1 - MPS)(Y - T) and I = (MPS)(Y-T) So, Y…

Q: What is usually the smallest component of spending in GDP in Australia?   A) Consumption spending…

A: GDP( Gross Domestic Product)  GDP refers to the production level of an economy of a nation during a…

Q: Suppose a small economy has two income tax rates: 15% for all income up to $50,000 and 30% for any…

A: GDP measures the total monetary worth of all recently created final products and services generated…

Q: if consumption is $3.8 trillion, investment is $1.1 trillion, government spending is $1.1 trillion,…

A: here we calculate the GDP which are as follow-

Q: Need asap please... If the U.S. government wanted to, it could just say that everyone who is…

A: Gross Domestic Product (GDP) is a basic metric for measuring well-being. The market worth of all…

Q: The table below shows hypothetical values of the expenditure components for the United States in…

A: Consumption is the amount of money spent on households and it includes all types of goods and…

Q: how much is GDP

A: GDP is the Gross Domestic Production. It means the value added by the production of goods and…

Q: While national income and domestic product must be equal, income must also equal expenditure for…

A: GDP estimates the final market value of services and goods produced within a year by a country. It…

Q: Give an example of a good that can be both an intermediate good and a final good. An intermediate…

A: Final goods refer to those products that are used either for use or investment purposes. Conversely,…

Q: Jse the information in the table to answer the following questions. All numbers are in billions of…

A: Answer The GDP Equilibrium at Y = C + I + G + NX Calculating for each row Y = 4250 + 1000 + 3250 -…

Q: Suppose a small economy has two income tax rates: 15% for all income up to $50,000 and 30% for any…

A: 1. (a) Income of Amy          = $20,000 Tax paid by  Amy       = 15% of 20,000       = (15/100) *…

Q: Consumption is $5.5 trillion, investment is $1 trillion, government expenditures are $1.5 trillion,…

A: Gross Domestic product (GDP) refers to the value of final goods and services produced in an economy…

Q: Explain the differences between actual GDP and potential GDP and support your answer by graph.

A: Potential GDP measures the value of production of goods and services that an economy is capable to…

Q: Suppose a small economy has two income tax rates: 15% for all income up to $50,000 and 30% for any…

A: Tax revenue means the income earned through taxation by the government.

Q: Which of the following is included in Gdp? Select one: a. medicare b. social security payments c.…

A: GDP is the total and final value of goods and services produced in an economy during a given period…

Q: Suppose a small economy has two income tax rates: 15% for all income up to $50,000 and 30% for any…

A: The majority of the government's usual revenue comes from taxes. Taxes, which are imposed on people…

Q: The effect of an $100 increase in government expenditure on the equilibrium GDP is greater than the…

A: Government spending:- The money spent by the government on purchasing products and for providing…

Q: Give an example of a good that can be both an intermediate good and a final good. An intermediate…

A: Goods that are used for consumption or investment purposes are referred to as final goods. On the…

Q: In the circular flow of income and spending, that is, the basic flow of income and spending between…

A: The model of circular flow helps to understand the relationship within an economic system. It…

Q: The table below shows hypothetical values of the expenditure components for the United States in…

A: The aggregate expenditure is characterized as the value of the finished goods in general and…

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: Considering the recent expenditure of governments across the world in providing vaccines free of…

A: The following problem has been solved as follows:

Q: Suppose that taxes on households are 10, and the government deficit is 5. Pre-tax household income…

A: In an economy, total GDP includes the spending made by the different sectors when computing it using…

Q: Why GDP can be computed either by measuring spending or by measuring income. Briefly explain

A: GDP is the aggregation of services and goods produced in the country at the given time period. Three…

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

A: Given, GDP at market prices is R 397bn Net Primary income from ROW is R 37bn Indirect taxes is R…

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…

Q: In April 2020, the US government made a one-time payment of US$1,200 to each US resident as part of…

A: Gross domestic product ( GDP)  refers to the total market value of goods and services produced…