“The total demand for goods and services consists of consumption demand, investment demand, government demand and net exports.” In terms of this statement, discuss the three sets of demand factors that can lead to economic growth.
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“The total demand for goods and services consists of consumption demand,
investment demand, government demand and net exports.” In terms of this
statement, discuss the three sets of demand factors that can lead to economic
growth.
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- An Economy is composed of a Producer of Apples, a Producer of Bananas, a Grocery Store, Consumers, and the Government. Producers of Apples and producers of bananas sell some of their output to the grocery store, and some directly to consumers. Producers of apples and bananas also have some loans, which they owe to consumers, and pay some interest on them. The government collects taxes and spends them on miliary personnel, which appear as wages. The following tables contain the relevant data for all of them to calculate GDP, except for consumers: Apples Producers Total Revenues Wages Interest on Loan Taxes 100 10 10 Bananas Producers Total Revenues Wages Interest on Loan Taxes 200 15 20 Grocery Store Cost of Apples Cost of Bananas Wages Taxes Revevenues 50 50 40 10 200 Government Taxes 50 |Wages 50 Calculate total profits (after taxes)An Economy is composed of a Producer of Apples, a Producer of Bananas, a Grocery Store, Consumers, and the Government. Producers of Apples and producers of bananas sell some of their output to the grocery store, and some directly to consumers. Producers of apples and bananas also have some loans, which they owe to consumers, and pay some interest on them. The government collects taxes and spends them on miliary personnel, which appear as wages. The following tables contain the relevant data for all of them to calculate GDP, except for consumers: Apples Producers Total Revenues Wages Interest on Loan Taxes 100 10 5 10 Bananas Producers Total Revenues Wages Interest on Loan Taxes 200 15 8 20 Grocery Store Cost of Apples Cost of Bananas Wages Таxes Revevenues 50 50 40 10 200 Government Taxes 50 Wages 50 Calculate GDP in the economy (you can use any approach you want).What determines whether a good is “capital” or a “consumer good”? How it is purchased: with business funds or with personal funds How it is used: to produce further wealth, or to be consumed Where it is located: in a home or in a business Where it is purchased: from a wholesaler or from a retailer Who uses it: the person buying it or an employee of theirs
- Calculate total GDP for this economy given the following components of demand. Round your answer to the nearest tenth and enter the value in trillions of dollars. Components of GDP on the Demand Side (in trillions of dollars) Consumption Investment Government spending Exports Imports Provide your answer below: trillion Total GDP 12.9 3.8 4.2 3.0 4.2 ?You are given the following information about the economy Personal consumption 6500 Indirect taxes less subsidies 150 State government consumption 500 Rental Income 2000 Change in business inventories 100 Stock appreciation 80 Gross private domestic Investments 1200 Exports 900 Net factor payments -100 Imports 1200 Depreciation 200 Define and calculate the following: GDPMP, GDPFC, GNPMP,GNPFC, NDPMP,NDPFC,NNPMP,NNPFC. How can price distortions be avoided in a marketLet's think of an economy with two industries and these industries be water and electricity companies. Electricity company, electricity using water and electricity; The water company also produces water using water and electricity. With the output of both companies measured in TL, 0.1 TL electricity and 0.1 TL water is required to produce 1 TL of electricity, 0.8 TL electricity and 0.2 TL water to produce 1 TL water. As the demand of the foreign sector is 18.000 TL electricity and 12.000 TL water production, X1 = total output of the electricity company, X2 = total output of the water company, electricity and waterCalculate the total output required for the companies to meet both external and internal demand by any matrix method.
- Individual Retirement Accounts (IRAS) allow people to shelter some of their income from taxation. Suppose the maximum annual contribution to such accounts is $5,000 per person. Shift the appropriate curve(s) on the following graph to show how a decrease in the maximum contribution, from $5,000 to $3,000 per year, would affect the market for loanable funds. INTEREST RATE (Percent) pemand Supply QTY OF LOANABLE FUNDS (Billions of dollars) This change in the tax treatment of saving causes the equilibrium interest rate in the market for loanable funds to and the level of investment spending toThe following graph shows the market for loanable funds in a closed economy. The upward-sloping orange line represents the supply of loanable funds, and the downward-sloping blue line represents the demand for loanable funds. 8 7 Supply 6 400, 4 Demand 100 200 300 400 500 600 700 800 LOANABLE FUNDS (Billions of dollars) INTEREST RATE (Percent)4. Supply and demand for loanable funds The following graph shows the market for loanable funds in a closed economy. The upward-sloping orange line represents the supply of loanable funds, and the downward-sloping blue line represents the demand for loanable funds. INTEREST RATE (Percent) 9 8 0 0 100 Supply Demand 200 300 400 500 600 700 800 900 1000 LOANABLE FUNDS (Billions of dollars)
- Consider a small country that produces and consumes only two goods: coffee and bananas. The quantity produced and price of each good in 2018 and 2019 are provided in the table below. Year 2018 Coffee Bananas Year 2019 Coffee Bananas The real GDP for year 2018 is: $ The real GDP for year 2019is: $ The growth of the real GDP is: Quantity % 650 pounds 300 pounds Quantity 700 pounds 330 pounds Price $5.5 per pound $0.4 per pound Assume that 2019 is the base year and round your response to two decimal places. (e.g. $963.45, 5.69%) The nominal GDP for year 2018 is: The nominal GDP for year 2019is: $ Price $6.0 per pound $0.5 per pound The GDP Deflator in 2018 is: The GDP Deflator in 2019 is: The inflation rate between the two years using the GDP deflator is. % Assume the average consumer buys 1 pound of coffee and 2 pounds of Bananas. Assume that 2019 is the base year and round your response to two decimal places. (e.g. $963.45, 5.69%) The consumer price index for 2018 is: The consumer price…1)How do markets to Shifts in the Demand and / or the Supply curve.What is the difference between a movement along a specific demand curve or supply curve and a shift of that demand or supply curve. Provide an example using the recent Corona Virus situation. 2) What is GDP? What is real GDP ? What is per capita GDP ? Why is our GDP shrinking in the ongoing Corona Virus Crisis? What is a clear indication that the GDP will be decreasing? Question 3:Why did the Fed switch from increasing Federal Reserve target rates from Dec 2015 to Dec 2018 to reducing interest rates in August 2019? Question 4.Economists often say that trade is a win-win situation. How do you justify this? Why might well-educated economists disagree on appropriate public policy in some situations?Explain some policy options that the US and other countries are considering or implementing in terms of the Corona Virus crisis. 6. Carefully distinguish between an economic theory and economic model. What is the role of value…How can an economy increase the production of one good without reducing the production of another? Identify at least three factors that contribute to this increase and explain how they contribute to the increase.