Macroeconomics
10th Edition
ISBN: 9780134896441
Author: ABEL, Andrew B., BERNANKE, Ben, CROUSHORE, Dean Darrell
Publisher: PEARSON
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Question
Chapter 2, Problem 5WWMD
To determine
To graphically represent the growth rate of
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Students have asked these similar questions
The national income of a country can be measured by three alternative methods:
Product Method?
Income Method, and Expenditure Method. 1. Product Method: In this method, national income is measured as a flow of goods and services? Distinguish between the Expenditure and Income
Approaches in relation to national income accounting?
From the information in the table below, calculate the following statistics.
Personal consumption
N1,344
Investment
456
Net nonbusiness interest income
270
Government purchases
480
Profit
406
Employee compensation
1520
Net exports
24
Rents
2
Depreciation
278
Indirect business taxes
156
Corporate retained earnings
249
Net foreign factor income
5
Interest
98
Social Security taxes
150
Transfer payments
300
Personal taxes
214
Statistical discrepancy
0
Gross domestic product b. Gross national product c. Net domestic product
National income e. Personal income f. Disposable personal income
The GDP deflator is: also known as the wholesale price index. equal to 100 in the base year. the ratio of real GDP for year X divided by nominal GDP for year X times 100.
a measure that tracks price changes for consumer goods..
Chapter 2 Solutions
Macroeconomics
Ch. 2 - Prob. 1RQCh. 2 - Prob. 2RQCh. 2 - Prob. 3RQCh. 2 - Prob. 4RQCh. 2 - Prob. 5RQCh. 2 - Prob. 6RQCh. 2 - Prob. 7RQCh. 2 - Prob. 8RQCh. 2 - Prob. 9RQCh. 2 - Prob. 10RQ
Ch. 2 - Prob. 1NPCh. 2 - Prob. 2NPCh. 2 - Prob. 3NPCh. 2 - Prob. 4NPCh. 2 - Prob. 5NPCh. 2 - Prob. 6NPCh. 2 - Prob. 7NPCh. 2 - Prob. 8NPCh. 2 - Prob. 9NPCh. 2 - Prob. 1APCh. 2 - Prob. 2APCh. 2 - Prob. 3APCh. 2 - Prob. 1WWMDCh. 2 - Prob. 2WWMDCh. 2 - Prob. 3WWMDCh. 2 - Prob. 4WWMDCh. 2 - Prob. 5WWMDCh. 2 - Prob. 6WWMD
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- Refer to Table 6.3 below, use the expenditure approach to calculate gross domestic product from the following set of numbers. Consumption $5,000 Investment $1,000 Depreciation $600 Exports $500 Government purchases $1,000 Saving $1,100 Imports $700arrow_forwardYou are discussing economic growth and the economic cycle with a group of colleagues in an effort to forecast the growth in an economy that is demonstrating an increase in investment, rising employment, and growing business confidence with slowly rising prices. Your discussion has encompassed the distinction between GDP and GNP and the importance of leading indicators for forecasting purposes. Based on this information, answer the following three questions. In national income accounting, what is the difference between gross domestic product (GDP) and gross national product (GNP)? GNP equals GDP plus domestic production/earnings by foreign companies/citizens ,minus foreign production/earnings by domestic companies/citizens GNP equals GDP plus foreign production/earnings by domestic companies/citizens, minus domestic production/earnings by foreign companies/citizens GNP equals GDP plus imports minus exports GNP equals GDP minus government spending minus exports plus imports.arrow_forwardWhich variable constitutes the largest portion of GDP using the expenditure method? A. Xn B. G C. C D. Iarrow_forward
- The gross domestic product (GDP) of the United States is defined as the _________ (options: cost of producing, market value of, wholesale cost of) all _______________ (options: final and intermediate goods and services produced, final goods and services produced, final goods and services consumed) by _________________ (options: U.S. citizens, U.S.-owned companies, resources within the United States) in a given period of time, usually a year.arrow_forwardThe following data represents the national income account for a country for 2017. All figures are in RM million Compensation Of Employee 588 888 Household consumption expenditure 258431 Tax On Employment 70 667 Government Finał Purchases 85 773 Transfer Payment 53 274 Domestic Private Gross Investment 71 394 Corporate Profits 177 821 Dividend Payment 9 247 Corporate Profit Taxes 85 354 Indirect Taxes 67 980 Government Subsidy 5 762 Exports 107 506 imports 112 030 Income Received From Abroad 21 030 Income…arrow_forwardThe following data represents the national income account for a country for 2017. All figures are in RM million Compensation Of Employee 588 888 Household consumption expenditure 258431 Tax On Employment 70 667 Government Finał Purchases 85 773 Transfer Payment 53 274 Domestic Private Gross Investment 71 394 Corporate Profits 177 821 Dividend Payment 9 247 Corporate Profit Taxes 85 354 Indirect Taxes 67 980 Government Subsidy 5 762 Exports 107 506 imports 112 030 Income Received From Abroad 21 030 Income…arrow_forward
- The following data were recently obtained from the BEA; values are in billions of dollars:Personal consumption expenditures, new goods: $3,780 Personal consumption expenditures, services: $8,667.8 Personal consumption expenditures, used goods: $570 Gross private domestic investment: $3,096.3 Exports of goods and services: $1,798.2 Imports of goods and services: $2,342.9 Government consumption expenditures and gross investment: $3,839.3 Government outlays for SNAP (food stamp) program: $85.4 a. What is the value of GDP?b. Your company has several factories and divisions located in other countries; how does the production of goods and services from those factories and divisions affect both U.S. and the other countries’ GDP?c. You are considering expanding your sales to either the country of Greater Dumpington or Lesser Dumpington, but are concerned about the local citizens’ ability to afford your relatively-expensive products. Both countries have the same GDP, but Greater Dumpington has…arrow_forwardGross National Product (GNP) and Gross Domestic Product (GDP) are used interchangeably to mean the same. TRUE OR FALSE *arrow_forwardWhen calculating GDP using the expenditure, double counting is avoided by: Question 25 options: A) subtracting imports from exports B) including final goods and services but not intermediate goods C) counting final goods and not services D) not including transfer payments in government spendingarrow_forward
- Why must double counting be avoided when measuring GDP? Provide an elaborate answer with at least one example. (preferably around 85 words)arrow_forwardUsing the data, provide estimates of the following key National Accounting Aggregates: a. gross national income b. disposable incomearrow_forwardIs nominal GDP larger or smaller than real GDP in Panel A data? Explain why specifically. (Note that the base year for Real GDP is 2012.)arrow_forward
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