Explain why an economy's income must equal its expenditure.

Q: Fill in the missing cells in the table to calculate GDP using the expenditure approach. Data…

A: Net Exports=Exports -Imports NX=X-M Exports=2350.2 Billion Dollars Imports=2928.6 Billion Dollars…

Q: components of GDP using the expenditure approach.

A: The expenditure approach to calculating gross domestics products for the nation, or GDP, uses these…

Q: Explain why the GDP component does not include stocks and bonds

A: Meaning of Macroeconomics: The term macroeconomics refers to the situation of economic and…

Q: Differentiate between the following: a) b) Expenditure Approach and the Value added Approach Nominal…

A: a) Expenditure approach Value-added approach In this, total spending on the final value of…

Q: Fill in the missing cells in the table to calculate GDP using the expenditure approach. Data…

A: GDP is the gross domestic product which calculate the production of goods and services produce in a…

Q: If Mercedes builds cars in the United States, is their value counted in U.S. GNP? If General Motors…

A: GDP refers to the monetary value of goods and services produced in the county in a particular period…

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: What is GDP, and why is it a useful measure? What are the most importantcomponents of GDP in the…

A: Domestic income is the total of factors incomes generated within a country during an accounting…

Q: Identify whether or not each of the following transactions would be included in GDP, and if so,…

A: (d) would be included in GDP Income method.

Q: Given the following: consumption = 400, investment = 100, government expenditure = 50 and net export…

A: GDP = Consumption + Investment + Government expenditure + Net export

Q: four components of GDP

A: GDP(gross domestic product) is the value of all goods & services that are produced by an economy…

Q: product, income and expenditure

A: GDP (Gross Domestic Product): It refers to the goods and services which are produced in an economy…

Q: Why are there two measures of GDP.

A: The gross domestic product (GDP) is that the most commonly used indicator of an economy's size…

Q: What is the formula for income and expenditure approach of GDP?

A: The market value of all final goods and services produced in the economic territory of the country…

Q: What is the largest component (C, I, G, or NX) of GDP? Give an example of each component.

A: The GDP is the summation of the monetary value of all the goods and services produced within the…

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: What is the level of private consumption in GDP is 10,000, investment is 2,900, government spending…

A: The GDP is the value of all the final goods and services that are produced in an economy in a given…

Q: Considering the Expenditure Approach of measuring GDP, what component are considered? Define and…

A: GDP ( Gross Domestic Product) is the value of all final goods and services produce in an economy…

Q: What are the components of Gross Domestic Product (GDP)? Give the one-letter symbol and what it…

A: Gross Domestic Product (GDP) refers to the total amount of goods and services produced and sold in…

Q: What is the relationship among the four expenditure components of GDP?

A: Gross Domestic Product (GDP) refers to the total of all the goods and services produced and sold…

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: 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: Explain the concept of the circular flow of the income in the economy.

A: The circular flow of the expenditure and the income in known as a procedure whereby the expenditure…

Q: If national income is $5,000 billion and disposable income is $4,000 billion, then what is personal…

A: Given: National Income (Y) = $5,000 billion Disposable income(Yd) = $4,000 billion We know,…

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: The equivalence of expenditure and income. What is the U.S total income in 2016 consisted of

A: The equivalence of tax and expenditure is total income. Total income of country varies according to…

Q: Explain difference between GDP and GNP.

A: GDP is the abbreviation of Gross Domestic Product. GNP is the abbreviation of Gross National…

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

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

Q: What components of GDP does Ford selling a Mustang from its inventory affect?

A: Gross Domestic Product (GDP): The total amount of final values of goods and services that are…

Q: What are the four components of GDP?

A: GDP signifies a monetary measure of commodities produced in the domestic borders during a period. It…

Q: why the expenditure apporach is used to calculate gdp

A: The gross domestic product is the aggregate value of all final goods and services produced in the…

Q: Define national income? Why do countries keep national income accounts? Distinguish between GDP…

A: National income is the value of final goods and services produced in an economy every year.

Q: explain how total output and total income are related to each other, and why they are related

A: Meaning of Macroeconomics: The term macroeconomics refers to the situation of economic and…

Q: What are the three views on GDP and how do they differ from each other? Since they measure output…

A: GDP refers to the total output or income generated by the people of a county in a specific year. It…

Q: Why do we calculate GDP using the expenditure approach

A: GDP: It means the market value of all final goods and services that are produced within a country…

Q: In measuring GDP, How does income approach differs to expenditures approach?

A: Answer is given below

Q: What is household consumption expenditure reflecting in terms of GDP of a country? What it indicates…

A:

Q: Please explain the relationships between income, consumption, savings, and GDP. Define each one.…

A: Income is the financial gain earned during a particular period of time.Consumption spending is the…

Q: ato flour and then sells it to a Baker for $25.00. The Baker uses the flour to bake bread and sells…

A: a. GDP: The GDP or Gross Domestic Product can be defined as the total income of the country. GDP…

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: explain which of the following transactions are included in the Gross Domestic Product, and by how…

A: GDP is an important macroeconomic measure of growth that is used to determine the total aggregate…

Q: If General Motors builds cars in Germany, is their value counted in Germany's GDP?

A: GDP or ‘gross domestic product’ is the value of the ‘goods & services’ that are produced within…

Q: What is the difference between intermediate and final goods? Why is the distinction between…

A: Macroeconomics studies the various forces affecting the economy as a whole like aggregate demand and…