Q: The GDP deflator measures A .the changes in aggregate prices of all final goods and services…
A: GDP deflator: - it is a measure of the change in the price of goods and services produced in an…
Q: An Economy is composed of a Producer of Apples, a Producer of Bananas, a Grocery Store, Consumers,…
A: Total profits = Profits made by Apple producers + Profits made by banana producers + Profits made by…
Q: If we want to calculate total spending in the economy, then we will include all of the following…
A: Tax revenue collected by the government is already counted when we talk about all the other 3 points…
Q: GDP can be computed as the sum of A) all sales that have taken place in an economy over a period of…
A: The value of GDP also shows the income level of the economy and the increase in GDP level over time…
Q: Final goods or services used to corpute GDP refer to the value of outstanding shares of stock of…
A: The measure that depicts the final value of goods and services being produced in an economy during a…
Q: The income and expenditure approaches to measuring a nation’s GDP can be combined using the circular…
A: Aggregate demand shows the total demand for all goods and services in an economy. There are five…
Q: For the purpose of calculating GDP, investment is spending on real estate and financial assets such…
A: GDP is the sum total of market value of final goods and services produced in a country during a…
Q: The purchase of Google stock is included in GDP because it represents an economic investment. 1)…
A: There are some precautions while estimating national income or GDP of a country in all three methods…
Q: Gross National Product (GNP) and Gross Domestic Product (GDP) are used interchangeably to mean the…
A: Gross domestic product refers to the total monetary value of all the final good and services…
Q: Double counting occurs when overstatement of GDP. included in the calculation of the GDP, leading to…
A: lets take an example of a producer A producing chocolate as his final product. now for the…
Q: The gross domestic product (GDP) of the United States is defined as the market value of all final…
A: Since we only answer up to 3 sub-parts we will answer the first 3. Please resubmit the question…
Q: All of the following are components of the expenditure approach to measuring GDP except from: Group…
A: The correct option is : Car dealer in Iowa being paid his monthly salary
Q: The gross domestic product (GDP) of the United States is defined as the all in a given period of…
A: Solution:- Blanks- 1) market value of 2) final goods and services 3) by resources within the US
Q: Suppose during a given year the following data is recorded for some country: $8 trillion of consumer…
A: Gross domestic product (GDP): - GDP is the market value of all final goods and services produced in…
Q: Which of the following is wrong? Select one: a. In the expenditures approach to GDP we subtract…
A: a) This statement is considered true as imports are deducted in the expenditure approach as they are…
Q: Define GDP. Identify the four components of GDP, used by government economists, when using the…
A: GDP: The gross domestic product i.e. GDP is the value of all finished goods and services or products…
Q: Along with government spending, what THREE factors make up gross domestic product (GDP) under the…
A: GDP = Household spending + Gross investment + Government spending + Net exports
Q: A criticism of gross domestic product (GDP) is that it can both underestimate and overestimate…
A: The gross domestic product refers to the total amount of all the final goods and services produced…
Q: Ho Chi Minh wants to measure gross domestic product. He can do so by measuring Question 22…
A: Gross domestic product is the value of final goods and services produced in the economy within a…
Q: Investment spending (I) Net taxes (NT) Net exports (X - IM) Consumption (C) Government purchases (G)
A: 1)Disposable income-National income 2)Investment spending-aggregate demand 3)Net taxes-national…
Q: ( Identify the following statement as "true" or "false", and comment on it: "Any accumulation of…
A: In an economy, various products and services are counted and included in the measurement of GDP. The…
Q: Saved Intermediate goods, which are goods that go into the production of other goods, are directly…
A: Answer to the question is as follows:
Q: Which of the following would cause real GDP to exceed nominal GDP? * a large increase in aggregate…
A: Gross domestic product (GDP): - GDP is the market value of all final goods and services produced in…
Q: Raphael and Susan Firth live in Swarthmore, PA. Their son, Alex, owns his own plumbing business. For…
A: The term GDP (Gross Domestic Product) is defined as the total monetary value of all final products…
Q: Intermediate goods are excluded from the GDP calculation to avoid double counting. Select one: a.…
A: Double counting describes an accounting error where an element or item is included more than once…
Q: GDP includes only the market value of (intermediate_ final) goods in the calculation because that…
A: Since you have asked multiple parts question we will solve first three parts for you if you want…
Q: Which one of the following is included in the GDP of Japan? Group of answer choices The value of the…
A: Gross domestic income refers to the value of goods and services produced domestically during an…
Q: Consider the expenditure approach to the measurement of GDP. For each of the following situations,…
A: Since you have asked multiple-part questions, we will only solve the first three questions for you.…
Q: Identify whether the following items are officially included in 2019 GDP or Not. Give specific…
A: 1.Treasury market is not included in official GDP and also stock market. Therefore 1 and 2 are not…
Q: The calculation of a country's GDP encompasses all private and public consumption, government…
A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…
Q: The gross domestic product (GDP) of the United States is defined as the _market value of v all final…
A: Gross domestic product is defined as the market value of final output generated within the economy.
Q: According to the product approach to Gross Domestic Product (GDP), GDP is the sum total of Four…
A: When talking about product approach to easily gross domestic product, it explains the production and…
Q: Based on the data provided, calculate GDP according to the Expenditure Model. Savings…
A: The measure that depicts the market value of goods and services that are being produced within the…
Q: What percentage of the U.S. gross domestic product (GDP) consists of consumer or household purchases…
A: (D)
Q: AWhich of the following expenditures associated with the production of a new Tesla Model 3 will be…
A: GDP refers to gross domestic product which is sum of value of all goods and services produced in a…
Q: Computation of GDP by the expenditures method would include the purchase of A. fertilizer by a…
A: Expenditure method is the method which measures final expenditure on gross domestic product at…
Q: Intermediate goods are excluded from the GDP calculation to avoid double counting. Select one: a.…
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: aggregate demand or national income.
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: 1 ) Changes in business inventories are: classified as government purchases. classified as…
A: GDP measures the final value of all goods and services that are produced within the domestic…
Q: The gross domestic product (GDP) of the United States is defined as the all in a given period of…
A: Gross domestic product measures the value of goods and services that are produced in a given year…
Q: Although GDP is a reasonably good measure of a nation's output, it does not necessarily include all…
A:
Q: The gross domestic product (GDP) of the United States is defined as the all in a given period of…
A: The Gross Domestic Product is the summation of the money value of all the final goods and services…
Q: Spending by households on goods and services is considered one of the GDP Components. Select one:…
A: Gross domestic product (GDP) is the final value of all goods and services produced in an economy. It…
Q: Definition of GDP and explanation of why this is equal to national income [ an explanation of how…
A: GDP (Gross Domestic Product) refers to the market value of all final goods and services that are…
Q: Which of the following will be counted as part of the U.S.'s GDP for a given year? Select one: a. An…
A: GDP is the national income or the total final value of the goods and services which can be produced…
Q: The following are national income account data for a hypothetical economy in billions of dollars:…
A: Gross private domestic investment =$320 Imports =$40 Exports =$22 Personal consumption expenditures…
Question 25 options:
|
|
|
||
|
|
|
||
|
|
|
||
|
|
|
In expenditure method GDP is the sum of expenditures of final consumption, investment, government consumption and export revenue.
Step by step
Solved in 2 steps
- When calculating GDP, the Government Purchases (G) category will include: Group of answer choices a) welfare payment to welfare recipients b) salaries for current US military officers c) unemployment benefits d) social security checks to retireesUsing the formula GDP = National Income + Depreciation + (indirect taxes – subsidies) + Net factor payments to the rest of the world, calculate GDP using the Income Approach. (all figures are in billions of dollars):An Indian citizen living in the US builds a new house in Spokane. In GDP calculations, this would be counted under: Group of answer choices 1) Imports 2) Consumption 3) Government Spending 4) Exports 5) Investment
- Calculate GDP using the Income or Expenditure Approach. (all figures are in billions of dollars): Item Amount ($) Government purchase of goods and services 1,721.6 Exports 1,096.3 Receipts of factor income from the rest of the world 382.7 Depreciation (consumption of fixed capital) 990.8 Net fixed Investments 688.2 Corporate income taxes 265.2 Consumption expenditures 6,739.4 Indirect business taxes 664.6 Imports 1,475.8 Payments of factor income to the rest of the world 343.7 Inventory change 56.5 Social security contributions 702.7 Undistributed corporate profits (retained earnings) 130.3 Government transfer and interest payments 1,366.3 Personal interest payments 286.2 Personal taxes 1,235.7 (b) Using the following data calculate: (i) The number of persons employed. (ii) The number of persons unemployed. (iii) The labour force. (iv) The Labour Force Participation rate. (v) The “official” unemployment rate.(a) Calculate GDP using the Income and (all figures are in billions of dollars): Approach. Amount ($) 1,721.6 1,096.3 Item Government purchase of goods and services Exports Receipts of factor income from the rest of the world Depreciation (consumption of fixed capital) Net fixed Investments 382.7 990.8 688.2 Corporate income taxes Consumption expenditures Indirect business taxes 265.2 6,739.4 664.6 Imports Payments of factor income to the rest of the world Inventory change Social security contributions Undistributed corporate profits (retained earnings) Government transfer and interest payments Personal interest payments Personal taxes 1,475.8 343.7 56.5 702.7 130.3 1,366.3 286.2 1,235.7When measuring GDP using the income approach, indirect taxes are: added because their value is not included in the main income components of GDP. subtracted because their value is already included in the main income components of GDP. added because they represent income to government agencies. subtracted because they represent net subsidies pay by government agencies. not relevant for the income approach but should be included when calculating the expenditure approach.
- Using the expenditure approach, calculate GDP using the following data: Item Amount in dollars (billions) Consumption 7,600 Consumption of Durable Goods 1,600 Consumption of Non Durable Goods 2,800 Consumption of Services 3,200 Investment 2,750 Fixed Investment 1,000 Government purchases of Goods & Services 1,675 Government Transfer Payments 450 Exports 750 Imports 1,600 GDP EqualsExpenditure (in thousands) Component Social Security payments $290 Depreciation $60 Gross private investment $740 Exports $210 Imports $350 Salaries earned by foreigners working in Magnolia $170 Household consumption $940 Purchases of raw materials $310 Government purchases $720 Capital income $240 Salaries earned by Magnolian residents working abroad $210 Using the expenditure method, the data show that Magnolia's GDP (in thousands) is $ 2260 . (Enter your response as an integer.) The value of Magnolia's GNP (in thousands) is S (Enter your response as an integer.)Using the expenditure approach, compute the value of the GDP? Transfer Payments $54 Interest Income $150 Depreciation $36 Wages $67 Gross Private Investment (I) $124 Business Profits $200 Indirect Business Taxes $74 Rental Income $75 Net Exports (X-M) $18 Net Foreign Factor Income $12 Government Purchases (G) $156 Household Consumption (C) | $304
- Determine if the following would be included (I) or excluded (E) from the calculation of GDP. (d) An increase in business inventories _______ (e) The income of a tax accountant working for a business _______ (f) Income received from interest on a corporate bond ________ (g) Business expenditures on pollution control equipment ______ (h) Dr. Jung grows tomatoes in his backyard for home consumption _______The gross domestic product (GDP) of the United States is defined as the market value of all final goods and services produced within the United States in a given period of time. Based on this definition, indicate which of the following transactions will be included in (that is, directly increase) the GDP of the United States in 2020. 2020 GDP Scenario Included Excluded Fastlane, a Japanese automobile company, produces a sedan at a plant in Indiana on December 14, 2020. A family buys the sedan on December 24. Rotato, a U.S. tire company, produces a set of tires at a plant in Michigan on September 25, 2020. It sells the set of tires to Speedmaster for use in the production of a two-door coupe that will be made in the United States in 2020. (Note: Focus exclusively on whether production of the set of tires increases GDP directly, and ignore the effect of production of the two-door coupe on GDP.) You chop down a cherry tree on your property in California and make a dining room table in…An economist, measuring GDP, first counted the value of aluminum created by an aluminum producer and then counted the value of a new car that an automaker sold that contains that aluminum. This characterizes: A) Depreciation B) Change in inventories C) Double Counting D) National income
