Use the concepts of gross investment and net investment to distinguish between an economy that has a rising stock of capital and one that has a failing stock of capital. Explain: “Though net investment can be positive, negative or zero it is impossible for gross investment to be less than zero.

Q: Discuss macroeconomic theory and presents what are the variables that determine gross domestic…

A: Economics as a subject deals with the allocation of scarce resources among humans with unlimited…

Q: a) Elucidate how an economy’s income must always equal its expenditure.

A: Hi, thanks for the question. As per the guidelines we are allowed to attempt to the first question.…

Q: Consider how each of the following events is likely to affect real GDP. Do you think the change in…

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Q: Which one of these will be deducted from gross output to determine the net output? a. Total…

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Q: Explain the importance of circular flow of income in an economy...

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Q: a. Suppose nominal GDP of a small economy in 2012 was $43 billion, the nominal GDP in 2018 was $96…

A: Given : Nominal GDP - 2012= $43 billion 2018=$96 billion Consumer Price Index : 2012=100 2018=180…

Q: Provide an interpretation for how consumption is related to income in the following: consumption =…

A: Marginal propensity to consume is the proportion of the disposable income that a person wants to…

Q: In the circular flow of expenditure and income, Select one: a. households are sellers and firms are…

A: We know that in the circular flow of expenditure and income a household are sellers and the firms…

Q: Refer to the information provided in Table below to answer the question. Aggregate Income ($…

A: Economics as a subject deals with the allocation of scarce resources among humans with unlimited…

Q: Explain how an increase in the interest rate can influence the level of GDP. (in 7 lines maximum). A…

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Q: Use the concepts of gross investment and net investment to distinguish between an economy that has a…

A: In the computation of the GDP, the main components that are evaluated are the personal consumption…

Q: consider the following hypothetical economy. Consumption makes of 60% of national income,…

A: Given consumption is 60% of national income implies that C=0.6Y, where C is consumption and Y is…

Q: farmer grows a bushel of wheat and sells it to a Miller for $20.00. The Miller turns the wheat into…

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

Q: Use the numbers in the table to calculate Econ Land’s Net GDP (NDP).

A: Disclaimer : “Since you have asked multiple question, we will solve the first question for you. If…

Q: Suppose the following information was published by the Australian Bureau of Statistics in 2017:…

A: Here, according to the given information, one can compare the Australian GDP in 2017 using the…

Q: Gross Domestic Product Explain how net exports affect the US economy. Describe both positive and…

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

Q: Suppose Gus spent a total of $150 for 1100 fluid ounces of Windex in 2017 and a total of $160 for…

A: please find the explanation below.

Q: The Bureau of Economic Analysis reported that the U.S. capital stock was $31.4 trillion at the end…

A: "Net investment represents the change in the capital stock and gross investment represents the total…

Q: Explain the reason why the next export falls as the interest rate rises. In your explanation, you…

A: Net exports   A country's overall trade is measured by net exports. Net exports are calculated by…

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: How would a person buying shares of common stock and paying a commission affect are countries GDP in…

A: Gross domestic product of a country is the market value of all final commodities and services that…

Q: For each of the following transactions, 1) determine whether it should be included in the…

A: Gross domestic product is the sum total of final values of services and goods produced in a year.

Q: The figure shows the flows of expenditure and income on Lotus Island. In 2016, R was $7 billion; W…

A: We know that, Total Expenditure- C+I+G+NX Here, C= W, I= J, G=U and NX= Z So, Total Expenditure = W…

Q: A) Elucidate how an economy’s income must always equal its expenditure

A: Hi, thank you for the question. As per our Honor code, we are allowed to attempt only the first…

Q: You purchase a Tesla Model 3. What is the impact to the different components of the U.S. GDP and the…

A: GDP is the gross domestic product which is the final value of goods and services that are produced…

Q: Suppose, in a year, an economy reports a nominal GDP of $100 billion dollar, a Real GDP of $200…

A: Answer: Introduction: Nominal GDP: nominal GDP refers to the value of goods and services (produced…

Q: The following consumption function of an economy is given3; 40+0.8Y where Y is national income If…

A: Solution is given:

Q: What is the difference between gross private domestic investment and net private domestic…

A: Domestic investment measures the total investment that the firms or the business invest in projects…

Q: The figure shows the flows of income and expenditure in an economy. In 2008, Q was $1,100 billion, U…

A: The circular flow of income represents the flow of money, goods and services among different sectors…

Q: The following table shows data on personal consumption expenditures, gross private domestic…

A: GDP (Gross Domestic Product) refers to the sum of all the final value of gods and services produced…

Q: Question 27 GDP is not a perfect measure of well-being; for example, O GDP incorporates a large…

A: The answer is - Option 2: GDP fails to account for the quality of the environment.

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A: GDP (Gross Domestic Product): It refers to the total of market value of all produced final goods and…

Q: The Bureau of Economic Analysis reported that the U.S. capital stock was $44.1 trillion at the end…

A: Given information: Depreciation in 2010 = $2.4 trillionCapital stock at the end of 2010 = $45…

Q: Briefly explain whether you agree or disagree with the following statements. ( a) 'If nominal GDP is…

A: The sum total of final.values of good and services is referred to be as GDP.

Q: The table shows some of the items in an economy's National Income and Product Accounts. Calculate…

A: Below is the calculation of national income: *National Income = GNP - Depreciation  National Income…

Q: Explain how gross domestic product is calculated using each of the following: the income approach…

A: GDP refers to the monetary value of all final goods and services produced in a country during a…

Q: Assume an economy with two firms: a coffee beans producer and a coffee shop. In a given year, a…

A: a coffee beans producer sells 50,000 tonnes of coffee beans to the local coffee shop at $50 per…

Q: ominal ($m) Real ($m) 2013 145 130 2014 150 128 Which of the following must be true? Select one:…

A: Nominal expenditure is not adjusted for inflation while the real expenditure is adjusted for…

Q: Using what you know about national income accounting, answer the following: a. Assuming that…

A: Disposable income is the income that is left after paying taxes. It is the income that is used to…

Q: 2. Consumption speriding $1.215 trillion, and spending on services is $2.041 trillion. What does…

A: Fixed investment in economics is the purchasing of newly produced fixed capital. It is measured as a…