On the demand side of GDP, consumption by _____________ is the largest component of GDP, accounting for about two-thirds of the GDP in any year. services businesses households government
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On the demand side of GDP, consumption by _____________ is the largest component of GDP, accounting for about two-thirds of the GDP in any year.
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services |
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businesses |
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households |
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government
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- Question 15 Which of the following statements is correct regarding measuring GDP? GDP can be measured either as the total spending on domestically produced goods and services, or the total value added in domestic production, or sum of all incomes received from domestic production A B C D E GDP can be measured only as the total spending on domestically produced goods and services Information about exports but not imports is necessary to calculate GDP- Government production is not included in the GDP The value added of government production is computed using the price that public goods and services are sold at in the marketThe table gives data on the economy of Iberia. Calculate Iberia's GDP. Iberia's GDP is $ billion. Item Net taxes Government expenditure on goods and services Saving Consumption expenditure Investment Exports of goods and services (billions of dollars) 10 20 15 65 18 35The Equivalence of Expenditure and Income (in Billions of Dollars) Expenditure C: Consumer goods and services I: Investment in plants, equipment, and inventory G: Government goods and services X: Exports M: Imports GDP: Total value of output b. Gross private investment % % c. Total government purchases % d. Exports e. Imports % $14,561 Instructions: Enter your responses as a percentage rounded to one decimal place. Calculate the following as a percentage of GDP for 2019: a. Personal consumption expenditures % 3,744 3,754 2,504 (3,136) $21,427 Wages and salaries Corporate profits Proprietors' income Income Rents Interest Taxes on output and imports Depreciation Statistical discrepancy Total value of income $11,434 2,075 1,658 778 645 1,494 3,463 (120) $21,427
- Gross domestic product (GDP) is a key measure of the national economy. a) Define GDP and describe three ways of calculating the size of GDP in an economy_________ is output per hour in the business sector. a)GDP per capita b)Investment c)Productivity d)Net exports21) Assume that with existing tax and spending laws, government spending exceeds government tax revenues. To cover the resulting shortfall, the government must: A) increase consumers' incomes. B) print more money. C) Borrow money in the financial markets. D) lower interest rates. 22) Gross Domestic Product (GDP) is defined as the market value of: A) all goods and services sold during the year by domestic and foreign producers. B) all final consumer goods produced during the year by domestic and foreign suppliers. C) all intermediate goods produced during the year by domestic and foreign suppliers. D) all final goods and services produced within the boundaries of an economy during the year by domestic and foreign-supplied resources. 23) In the equation GDP = C + I + G + F, in which F equals net export spending (i.e., total spending on exports minus total spending on imports), imports are subtracted from the other types of expenditures because: A)…
- ! Pub The population of country X is 1,000 people. Here are the expenditures for country X for one year. Consumption Expenditures $500,000 Investment Expenditures Government Expenditures $400,000 $150,000 Imports $50,000 24. What is the GDP of country X? 25. What is the per capita GDP of Country X? 26. The city of Detroit has high unemployment. The automobile industry in Detroit has suffered from global competition and has moved much of the remaining production out of Detroit. The population of the city has fallen from a high of 1,850,000 in 1950 to 701,000 in 2013. Some of the highest crime rates in the United States are now those of Detroit, and huge areas of the city are in a state of severe urban decay. The police force and fire service do not have enough money to pay for staff and equipment such as fully operational vehicles. In 2013, Detroit filed the largest municipal bankruptcy case in U.S. history. How does unemployment affect the income of city? Describe how unemployment…On the demand side of GDP, consumption by _____________ is the largest component of GDP, accounting for about two-thirds of the GDP in any year. options a) businesses b) households c) services d) government16. Write the name of the three missing categories of expenditure that contribute to a country's GDP. exports Draw a picture that accurately represents each category. Several pictures or categories are already filled in for you. consumption + 1 + = + GDP
- 4. Measuring GDP The following table shows data on consumption, investments, exports, imports, and government expenditures for the United States in 2020, as published by the Bureau of Economic Analysis. All figures are in billions of dollars. Fill in the missing cells in the table to calculate GDP using the expenditure approach. Consumption (C) Investment (I) Exports (X) Imports (M) Net Exports of Goods and Services Government Purchases (G) Gross Domestic Product (GDP) Data (Billions of dollars) 14,047.6 3,637.8 2,123.4 2,774.6 3,859.5A criticism of gross domestic product (GDP) is that it can both underestimate and overestimate production and well-being in an economy. Which of the following is a reason that GDP might underestimate the actual production and well-being in an economy? GDP is adjusted for changes in product quality and variety over time. GDP includes how difficult production is for workers. GDP ignores sustainability. GDP excludes production not traded in markets.Use the information in the table to answer the following questions. All numbers are in billions of 2012 dollars. Real GDP (Y) Consumption (C) Planned Investment (I) Government Purchases (G) Net Exports (NX) $15,000 $11,750 $1,500 $3,000 -$500 $16,000 $12,500 $1,500 $3,000 -$500 $17,000 $13,250 $1,500 $3,000 -$500 $18,000 $14,000 $1,500 $3,000 -$500 $19,000 $14,750 $1,500 $3,000 -$500 The equilibrium level of GDP is $ 18,000 billion. The MPC is (enter your response to two decimal places).