ECON MACRO
5th Edition
ISBN: 9781337000529
Author: William A. McEachern
Publisher: Cengage Learning
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Question
Chapter 6, Problem 1.3P
Sub-part
A
To determine
The value of Gross private domestic investment.
Concept Introduction:
Gross private domestic investment: It is the measure of physical investment used in calculating
Sub-part
B
To determine
The value of net investment.
Concept Introduction:
Gross private domestic investment: It is the measure of physical investment used in calculating gross domestic product (GDP).
Sub-part
C
To determine
Whether intermediate goods are counted in gross investment.
Concept Introduction:
Gross private domestic investment: It is the measure of physical investment used in calculating gross domestic product (GDP).
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Question 4
Calculate the net value added at the market price of a firm:
Sale - 400Change in stock - (-20)
Depreciation - 30
Net indirect taxes - 40
Purchase of machinery - 200
Purchase of an intermediate production - 250
Calculate the value of output.
7-
The__________refers to the sum of all current incomes received by the individuals or households from all sources within the domestic territory of a country during an accounting year.
a.
National income
b.
Private income
c.
Personal income
d.
Passive income
16-
Which one of these will be deducted from gross output to determine the net output?
a.
Intermediate consumption
b.
Private income
c.
Factor income from abroad
d.
Total government spending
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Similar questions
Given the following data, answer questions a through c.
Billions of dollars
New Residential Construction
$500
Purchase of existing homes
$250
Sales value of newly issued stocks and bonds
$600
New physical capital
$700
Depreciation
$200
New Intellectual property
$100
Household purchases of new furniture
$50
Net change in firms’ inventories
$100
Production of new intermediate goods
$700
What is the value gross private domestic investment?
Answer:
What is the value of net investment?
Are any intermediate goods counted in gross investment?
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1-
The four expenditure categories of GDP consist on consumption, government purchases, investment, net-exports.
Select one:
a. True
b. False
2-
GDP doesn’t include value of almost all activity that is takes place outside markets.
Select one:
a. False
b. True
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1 ) Changes in business inventories are:
classified as government purchases.
classified as consumption expenditures.
classified as investment expenditures.
excluded from GDP.
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The Reliable Aircraft Company manufactures small, pleasure-use aircraft. Based on past experience, sales volume appears to be affected by changes in the price of the planes and by the state of the economy as measured by consumers' disposable personal income. The following data pertaining to Reliable's aircraft sales, selling prices, and consumers' personal income were collected:
Year
Aircraft Sales
Average Price
Disposable Constant Income
(Dollars)
(In constant 2006 dollars, billions)
2006
525
16,800
610
2007
450
8,000
610
2008
400
8,000
580
The arc price elasticity of demand between 2006 and 2007 is:
The arc income elasticity of demand between 2007 and 2008 is:
Assume that these estimates are expected to remain stable during 2009. Forecast 2009 sales for Reliable assuming that its aircraft prices remain constant at 2007 levels and that disposable personal income will increase by 7%. Also assume that the arc…
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13
Which national income estimation method needs information such as indirect taxes, depreciation and intermediate consumption?
a.
Net output
b.
Income
c.
Expenditure
d.
Factor
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What are the differences between national income, personal income, and disposable personal income?
Note:-
Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism.
Answer completely and accurate answer.
Rest assured, you will receive an upvote if the answer is accurate.
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Question 1 Gross domestic product is the market value of all: O final goods and services produced by a country's citizens, wherever located, in a year final goods and services produced within a country in a year O goods and service sold within a country in a year O all goods and services produced within a country in a year
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13
According to value added method, national income of a country is the sum of __________ during a given year.
a.
Income received in different sectors of the economy
b.
Expenditure made in different sectors of the economy
c.
Output produced in different sectors of the economy
d.
Resources utilized in different sectors of the economy
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