Which of the following is true about the components of GDP?   When we buy stocks, this is economic investment. Net exports must always be a negative number. Government purchases make up the largest part of GDP. A refrigerator is a durable consumption good.

Q: Given the following: Ca = $450, Ig = $250, Xn = − $10, and G = $30, what is the economy’s…

A: Equilibrium GDP is given by the aggregate of Consumption, Investment, Government Expenditure.

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

A: Net output = Gross output – Intermediate consumption(Depreciation)   whereas factor income from…

Q: Classify each of the following items as a final good or service or an intermediate good or service…

A: The gross domestic product(GDP) refers to the market value of all the final commodities produced…

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: Total spending in the economy is equal to consumption plus investment plus government spending plus…

A: Savings are the amount that is left after all the consumer spending in the market from the…

Q: Suppose MPC = 0.75. If the government increases spending by $100 billion, Workers get $100 billion…

A: MPC stands for marginal propensity to consume that is the percentage of extra addition to the income…

Q: The following table gives data for a small country, Magnolia: Use the data to calculate GDP for…

A: National Income refers to the total income that is derived from the economic activities in a…

Q: The following is data provided for the year 2020: Capital consumption allowance $119.5 Wages 855.7…

A: National income refers to the value of commodities and services produced by a country during a…

Q: A rise in investment by $200,000 will lead to a __________________________________. Group of answer…

A: The rise in the investment leads to rise in the expenditure in the economy. The expenditure helps to…

Q: Suppose real GDP is $5,361 billion, taxes collected by the government are $528 billion, government…

A: Formula:

Q: Which of the following are assumed to be independent of the level of national income: (a)…

A: National income refers to the total income earned by the people of an economy in a particular period…

Q: ace each of the following transactions in one of the four components of expenditure: consumption,…

A: The expenditure components are : Consumption, Investments, Government expenditure and export. The…

Q: If consumption is $8 billion, investments is $4 billion, government purchases are $2 billion,…

A: Government purchase denotes the certain expenditure on the economics services and the goods by body…

Q: Consider the following information on aggregate income, consumption expenditure, and planned…

A: Gross domestic Product is defined as the monetary value of all the final finished goods and service…

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: In 2019, consumer spending was $14,000, government purchases of goods and services were $3,700, and…

A: We know that, Y=C+I+G+(X-M)Now, we will do the calculation of the portion…

Q: Use data below to answer the following questions: Consumption expenditures $300 billion, Government…

A: Answer: Given, Consumption expenditure=$300 billionGovernment purchases=$50 billionTaxes=$40…

Q: If consumption expenditure is $30 billion, investment spending is $15 billion, government spending…

A: Consumption = $30 billion Investment = $15 billion Government spending = $12 billion Exports = $4…

Q: particular aggregate expenditure function , which of the following must be true if the prevailing…

A: Total expenditure is the current worth of the relative multitude of finished labor and products in…

Q: Historically, the change in real GDP during recessions has been a. mostly a change in investment…

A: Real GDP - It is the measure that reflects the inflation adjusted value of goods and services…

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: 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: Q.1.8 In the national income accounts: (2) (1) Total spending is always equal to total production…

A: In the national income accounts total spending is always equal to total production and income.

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: An economy has the following data: real GDP $5,166 billion taxes collected by the government $499…

A: GDP: It refers to the goods and services which can be produced in an economy during a particular…

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: consumption function of a hypothetical Economy is given as:- C = 100 + 0.6Y Calculate the value of…

A: Marginal Propensity to consume alludes to the rate change in utilization for each one dollar of…

Q: Suppose that GDP was $250 billion in year 1 and that all other components of expenditures remained…

A: GDP stands for gross domestic product which is the sum of value of all goods and services produced…

Q: Consider a closed economy in which total output equals $13,000. The economy also has the following…

A: Given : In a closed economy, Total Output = $13000 Consumption=$6500 Government Spending = $ 2500…

Q: A. Place each of the following transactions in one of the four components of expenditure:…

A: The economies around the world tend to focus on their economic growth, and development through…

Q: The demand measure of GDP accounting adds together:     consumption, government purchases, wages…

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

Q: If U.S. government statistics counted education spending as part of the investment, which of the…

A: GDP is the value of all the goods and services produced in the economy in a specific period of time,…

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: If net disposable income is $140 million and national consumption expenditure is $60 million Find…

A: The information given is as follows:- Net disposable income = $140 million National consumption…

Q: How will an increase in taxes applied to businesses affect the GDP based on the Expenditure…

A: Due to increase in taxes,gross domestic capital formation would decrease.

Q: In the third quarter of 2008, investment in the U.S. totaled $4,2 trillion and in 2007, investment…

A: Multiplier = 1 / [1 - MPC] Increase in real GDP = Increase in investment spending * Multiplier

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: 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: Suppose that in a closed economy GDP is $50,000, consumption is $35,000, taxes are 10,000 and…

A: The Gross Domestic Product (GDP) measures the market value of all the final goods and services…

Q: Which of the following would be counted as gross private domestic investment and why? (a) General…

A: a. The Gross Private Domestic Investment is the measure of the physical investment made by the…

Q: Suppose GDP is $ 15 trillion, with $ 8 trillion coming from consumption, $ 2.5 trillion coming from…

A: The correct alternative for the aforementioned question is (C).

Q: Which of the following will not cause an increase in equilibrium GDP? a) an increase in government…

A: GDP is the value of final goods and services produced in the economy within a given period of time.

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: If the increase in government spending is $500 and the marginal propensity to consume is .75 then…

A: The change in the real gross domestic product depends on the value of the marginal propensity to…