Based on Aggregate Expenditure (AE) model if aggregate expenditure is less than GDP, what will happen (increase or decrease) to: inventories GDP Employment
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- Based on Aggregate Expenditure (AE) model if aggregate expenditure is
less than
- inventories
- GDP
- Employment
Step by step
Solved in 2 steps
- Explain briefly whether each of the following would cause GDP to overstate or understate the degree of change in the broad standard of living. The environment becomes dirtier The crime rate declines A greater variety of goods become available to consumers Infant mortality declinesWhat are the main components of measuring GDP with what is demanded?What are the two main difficulties that arise in comparing different comparing GDP?
- You did some work on it. Sub parts to be completed/solved. Need help with this 1. Spending - Included in the U.S. GDP for 2020, or not included ? If so, under which expenditure category (C, I, G, X etc,?) If not, why not? A.You buy a $20,000 new Toyota made in San Antonio. ____________________ B. Microsoft buys a $20,000 new Toyota made in San Antonio ________________ C. Kendrick Jones, of Alberta, Canada, buys a $20,000 new Toyota made in San Antonio_______________ D. You buy $20,000 in General Motors Corporation stock ___________________ E. You pay a lawyer $2,000 to sue your neighbor for building a fence on your land, and lose the suit. ________________________ F, You buy your neighbor’s used fence for $1,000. _________________________ H. You pay Alamo Colleges $1200 tuition for classes you took during 2020 ____________________________ I. The federal government sends Nruce Borton a social security check for $600 during 2020. _______________________________ J. The San…1. Spending - Included in the U.S. GDP for 2020, or not included ? If so, under which expenditure category (C, I, G, X etc,?) If not, why not? A.You buy a $20,000 new Toyota made in San Antonio. ____________________ B. Microsoft buys a $20,000 new Toyota made in San Antonio ________________ C. Kendrick Jones, of Alberta, Canada,goes to Toronto Autos to buy a $20,000 new Toyota made in San Antonio_______________ D. You buy $20,000 in General Motors Corporation stock ___________________ E. You pay a lawyer $2,000 to sue your neighbor for building a fence on your land, and lose the suit. ________________________ F, You buy your neighbor’s used fence for $1,000. _________________________ H. You pay Alamo Colleges $1200 tuition for classes you took during 2020 ____________________________ I. The federal government sends Nruce Borton a social security check for $600 during 2020. _______________________________ J. The San Antonio Independent School District pays Ricki Kicker $55,000…6. (Aggregate Expenditure) What are the components of aggregate expenditure? In the model developed in this chapter, which components vary with changes in the level of real GDP? What determines the slope of the aggregate expenditure line?
- 3. Suppose that an economy shows only the following activities in aspecific year:i. It costs an automobile manufacturing company €10 millionto assemble 5,000 cars. The cars are then sold to stores for€12 million.ii. The stores pay their workers an annual wage of €1 million andthen sell the cars directly to the consumers for €15 million.Please find other instances like this and correct them.a. Calculate the GDP in this economy using the productionof-final-goods approach.b. Calculate the GDP using the value-added approach. Showthe value added at each stage of production.c. Calculate the GDP using the income approach. Show thecosts incurred and profits earned.Need help with this. 1. Spending - Included in the U.S. GDP for 2020, or not included ? If so, under which expenditure category (C, I, G, X etc,?) If not, why not? A.You buy a $20,000 new Toyota made in San Antonio. ____________________ B. Microsoft buys a $20,000 new Toyota made in San Antonio ________________ C. Kendrick Jones, of Alberta, Canada, buys a $20,000 new Toyota made in San Antonio_______________ D. You buy $20,000 in General Motors Corporation stock ___________________ E. You pay a lawyer $2,000 to sue your neighbor for building a fence on your land, and lose the suit. ________________________ F, You buy your neighbor’s used fence for $1,000. _________________________ H. You pay Alamo Colleges $1200 tuition for classes you took during 2020 ____________________________ I. The federal government sends Nruce Borton a social security check for $600 during 2020. _______________________________ J. The San Antonio Independent School District pays Ricki Kicker $55,000…26 Calculate the GDP under Expenditure approach, if Consumption is 2.9 billion, Investment is 1.3 billion, Government expenditure is 1.9 billion, Net exports are=[NE] and Export=1 billion. Select one: a. None of these b. -2.20 c. 14.40 d. 13.10 e. -1.20
- 1. a. Write the components of GDP (from the table) according to the expendituremethod. 1. b. By using the expenditure method, calculate GDP for years 2018 and 2019. 1. c. Explain “Changes in inventories”. If a demand shock occurs in the economy and thedemand falls drastically when prices are flexible, how would “Changes in inventories”account respond this? Why? Country Name Year Exports Consumption Investment Net Exports Government Expenditure Imports Cambodia 2018 61.315 75.209 23.341 -1.699 4.904 63.014 Cambodia 2019 67.209 81.655 26.660 -1.512 5.288 68.721Give typing answer with explanation and conclusion what is the US GDP for the first quarter and second quarter of 2021? What is the personal consumption expenditures for the first quarter and second quarter of 2021?1- When opening a print shop you need to buy printers, computers, furniture, and similar items, economists call these expenditures is capital investment. Select one: a. False b. True 2- M/S - Saud Bahwan Group, Muscat buys 30 Hyundai Accent cars from South Korea to sell during 2018 Ramadan sale. Each car is purchased at a cost of 8500 OMR. Which component of the GDP shows the reflection and how much? Select one: a. Consumption - OMR 255,000 b. Imports – OMR 255,000 c. Government purchases - OMR 255,000 d. Investment - OMR 255,000