Macroeconomics: Principles and Policy (MindTap Course List)
13th Edition
ISBN: 9781305280601
Author: William J. Baumol, Alan S. Blinder
Publisher: Cengage Learning
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Chapter 8.A, Problem 3DQ
To determine
To describe: The importance of
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Calculate the value of NDPFC if GDPMP is $1200 million, depreciation Is $250 million and the net indirect taxes are $100 million
Suppose, the GDP of a country is 50 million, net factor income from abroad is 20 million and depreciation charges are 10 million. Compute the net national product of the country.
a. NNP = 70 million
b. NNP = 80 million
c. NNP = 60 million
d. NNP = 50 million
Suppose that net national product in 2018 was $50
billion and depreciation was $15 billion. Gross national product in 2018 was:
$35 billion
-$35 billion
$65 billion
$55 billion
Chapter 8 Solutions
Macroeconomics: Principles and Policy (MindTap Course List)
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- Consider below information about Jacaranda Economy and answer the question that follow. Components Value per annum Wages and salaries R12 000 Exports R50 000 Rentals R22 000 Imports R63 700 Interest R9 300 Consumer spending R85 250 Government spending R33 200 Gross capital formation R6600 Using the table above, which approach can be used to calculate Jacaranda’s Gross Domestic Product? A. Income B. Production C. Expenditure D. Depreciationarrow_forwardRefer to the economic activities information provided and answer the questions that follow Depreciation. 40zmw Receipts of factor income from the rest of the world. 30zmw Government purchases 100zmw Imports 50zmw Payments of factor income to the rest of the world. 50zmw Net private domestic investments. 200zmw Personal income taxes. 120zmw Personal consumption expenditure 600zmw Dividends 20zmw Exports 60zmw Determine the value of GDP NNP NI PI DIarrow_forwardDiscuss the shortcomings of Gross National Product as an indicator of financial well-beingarrow_forward
- When we add depreciation to net investment, we arrive at...............arrow_forwardIf gross investment in 2017 is $200 billion and depreciation in 2017 is $1000 billion, net investment in 2017 is?arrow_forwardSuppose GDP is $16 trillion, with $10 trillion coming from consumption, $2 trillion coming from gross investment, $3.5 trillion coming from government expenditures, and $500 billion coming from net exports. Also suppose that across the whole economy, depreciation (consumption of fixed capital) totals $1 trillion. From these figures, we see that net domestic product equals: a. $17.0 trillion. b. $16.0 trillion. c. $15.5 trillion. d. None of the above.arrow_forward
- Depreciation is included in GDP, but excluded from NNP, true or false.arrow_forwardDiscuss the items excluded from the calculation of Grss Domestic Product (GPD) and explain why in four to five paragraphsarrow_forwardFill in the blanks: _______________ ___________ = income received but no goods are produced in exchange. ________________, ____________________, and durable goods are the three categories of Consumption Expenditures. ______________ Domestic Product = GDP minus depreciation.arrow_forward
- Provide a comprehensive definition of the term, Gross National Product.arrow_forwardAl's Aluminum Company sells $1 million worth of aluminum to Shiny Foil Company, which uses the aluminum to make aluminum foil. Shiny Foil Company sells $3 million worth of aluminum foil as a final product to consumers. How much do the transactions just described contribute to the Gross Domestic Product? options: $3 million. $2 million. $4 million. $1 million.arrow_forward#4 Personal Taxes $ 40 Social Security Contributions 15 Taxes on Production and Imports 20 Corporate Income Taxes 40 Transfer Payments 22 U.S. Exports 24 Undistributed Corporate Profits 35 Government Purchases 90 Gross Private Domestic Investment 75 U.S. Imports 22 Personal Consumption Expenditures 250 Consumption of Fixed Capital (depreciation) 25 Net Foreign Factor Income 10 Statistical Discrepancy 0 Refer to the accompanying data (all figures in billions of dollars). NDP is Multiple Choice $402. $370. $392. $467.arrow_forward
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