Respond to the following in a minimum of 175 words: Discuss the limitations of gross domestic product (GDP) as a measurement tool. What is the difference between real and nominal GDP?
Q: What are the difference between Nominal GDP and Real GDP? Why do economists use Real GDP rather than…
A: Answer - Need to find- Difference between Nominal GDP and Real GDP and Why do economists use Real…
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Q: Which of the following is NOT a component of the expenditures approach to calculating GDP? Select…
A: Expenditure Approach is a method of calculating the Gross Domestic Product (GDP) of the country. In…
Q: he term "full employment GDP" is synonymous with which of the following
A: At macroeconomic equilibrium, quantity demanded of Real GDP is equal to quantity supplied of Real…
Q: Thoroughly explain the components of GDP and relate those components to the Circular Flow model with…
A: The components of GDP are:1. Consumption expenditure2. Investment expenditure3. Government…
Q: (Nominal GDP) Which of the following is a necessary condition —something that must occur—for nominal…
A: Nominal GDP (NGDP) = Real GDP (RGDP) x Price level (P) So, % Change in NGDP = % Change in RGDP + %…
Q: Which of the following is true about real and nominal GDP? Only nominal GDP is measured in dollars,…
A: GDP is a popular measure used world wide in the estimation of the economy's performance during a…
Q: With reference to the table given above, calculate: i. Gross Domestic Product at factor cost ii.…
A: "Since you have posted a question with multiple sub-parts, we will solve the first three subparts…
Q: Why GDP is criticized as a “deeply foolish” indicator of how an economy? What are the different…
A: The measure that depicts the total value of goods and services that are being produced in an economy…
Q: Calculate Happy Land Republic’s nominal GDP and real GDP in 2016 ii. Why does real GDP always…
A: Gross domestic product (GDP) is the money value of all final goods and services produced in an…
Q: Which of the following is not included in the computation of the consumption component of gross…
A: The consumption function does include spending on durable and nondurable goods, and services in the…
Q: What is a real GDP? Why do economists prefer to use that as a measurement over regular GDP?
A: Real GDP is the final value of goods and services that are produced in the economy and are ready for…
Q: Explain concisely whether the following statement is true or false: “The GDP of a country does…
A: Answer: The given statement is false. Explanation: GDP (gross domestic product): GDP refers to the…
Q: Determine whether each description refers to nominal gross domestic product (GDP) or real GDP. A…
A: Solution - Definition GDP - GDP is a measure to calculate total output of a country in a year .…
Q: Are the following included or not in the measurement of Gross Domestic Product (GDP)? Explain your…
A: In an economy, any output that is generated in thate specfiic year and used for a final consumption…
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: Nominal GDP can be found by: Answers: A. Adding the value of all final output produced…
A: GDP is the money value of all final goods and services produced in an economy during a given year.
Q: Identify the effect on GDP due to the following factors. Factors Effect on GDP An improvement in…
A: Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: If we denote nominal GDP as Y and nominal gross output as Z, what formulas would you use to…
A: Gross domestic product (GDP): - GDP is the market value of all final goods and services produced in…
Q: The difference between measuring GDP with the income approach and the expenditure approach is the…
A: Gross domestic product (GDP): - GDP is the market value of all final goods and services produced in…
Q: Which statement best describes the difference between Nominal and Real GDP? Group of answer choices…
A: Nominal GDP measures the value of goods and services at current market prices. Real GDP measures the…
Q: When we compare the difference between Nominal GDP and Real GDP we note A. Nominal GDP is always…
A: Real GDP is calculated on the basis of base or fixed year while current GDP is calculated on the…
Q: Manuel and Poornima White live in Swarthmore, PA. Their son, Shen, owns his own plumbing business.…
A: Components of GDP:- C= Consumption I= Investment G= Government spending X= Export M= Import
Q: What are the components of Gross Domestic Product (GDP)? Give the one-letter symbol and what it…
A: Gross Domestic Product (GDP) refers to the total amount of goods and services produced and sold in…
Q: Suppose nominal GDP in 2013 increased by 8% (over its previous level in 2012). Given this…
A: Gross domestic product refers to the total market value of goods and services produced domestically…
Q: How will you differentiate nominal GDP from real GDP? Which one (nominal or real) do you consider…
A: Every country focuses on its economic growth. Each country runs on its production, investment, and…
Q: Consider each of the following items. Should it be counted as part of U.S. GDP? If so, in which…
A: GIVEN Consider each of the following items. Should it be counted as part of U.S. GDP
Q: The following provides data for an economy in a certain year Consumption expenditures $1,000 $600…
A: a) Trade Deficit:- The term "trade deficit" refers to the scenario where the import of a nation is…
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: GDP is a good and useful measure of general economic activity for each of the following reasons…
A: Answer: Option C (The total value of GDP is lower if the distribution of income is lower and less…
Q: Which of the following is a way to compute real GDP? a. add up the market values of all final…
A: The value of all goods and services generated by an economy in a given year (expressed in base-year…
Q: Gross Domestic Product was designed as a measure of economic activity, specifically a measure of…
A: Gross domestic product measures the increase in the production of goods and services. An increase in…
Q: How would I calculate the real GDP increase between the years 2013 and 2003? 2003: Nominal GDP…
A: GDP: Gross domestic product or what is commonly known as GDP is the measurement of the final value…
Q: Which of the following statements is true: Real GDP equals nominal GDP multiplied by the GDP…
A: GDP includes the value of goods and services that are produced within the economy at current year…
Q: 1.Real GDP is a more perfect measure of an economy's production than nominal GDP. Explain 2.…
A: Economists are the people who make theories and models on economic behavior using presumptions, past…
Q: Which spending category of GDP does each of the following transactions count in? Please enter the…
A: suppose,C= Consumption.I= Investment.G= Government spending.NX= Net export.N=None. We can enter the…
Q: If real GDP has decreased, which of the following statements is always true? a. Nominal GDP is lower…
A: The market value of all final goods and services produced in the economic territory of the country…
Q: Distinguish the difference between nominal GDP and real GDP
A: GDP (gross domestic product) is the total value of goods & services manufactured in an economy…
Q: Explain the difference between Nominal GDP and Real GDP.
A: GDP is the final value of all goods and services in a country in a given year.
Q: suppose a small economy produces only smart TVs. in year one, 10,000 TVs are produced and sold at a…
A: Year 1 TV produced = 10,000 Sales Price = 1000 Year 2 TV Produced = 10,000 Sales Price = 1500
Q: Identify whether the following items are officially included in 2019 GDP or Not. Give specific…
A: GDP: It means monetary or market value of all the finished goods and services that are produced…
Q: Gilberto and Juanita Jones live in Svarthmore, PA. Juanita's father, Lorenzo, lives in Sweden. For…
A: Below Table shows whether the given statement is under the part of consumption, investment,…
Q: A final good or service is something that retains no value when factored into the GDP is not a…
A: Answer: Option B (is not a component of another good or service) Explanation: A final good or…
Respond to the following in a minimum of 175 words:
- Discuss the limitations of
gross domestic product (GDP) as a measurement tool. - What is the difference between real and nominal GDP?
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- Using 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):Using the data below, calculate GDP by using expenditure approach: Year 2017 RM (million) 700 2500 790 670 1000 3200 2300 9000 450 900 2000 1000 500 9300 3100 5500 4500 Item Factor income paid abroad Import of goods and services Corporate taxes Retained earnings Depreciation Export of goods and services Subsidies Private Investment Personal Income tax Social security contribution Change in stock Transfer payment Indirect business tax Public Investment Consumption Government expenditure Factor income receive from abroad Calculate the Year 2018 RM (million) 450 3000 900 590 1200 4500 3790 8900 600 900 -350 1200 650 7800 8000 5600 3200 Gross domestic product at market price Gross National product at market price Gross National product at factor cost а. b. С. National Income Personal Income d. е. Disposable personal Income Gross domestic product at factor cost f. g.The table below contains data for country A for the year. Household purchases of durable goods Household purchases of nondurable goods Household purchases of services Household purchases of new housing Purchases of capital equipment Inventory changes Purchases of new structures Depreciation Salaries of government workers Government expenditures on public works Transfer payments Foreign purchases of domestically produced goods Domestic purchases of foreign goods What was country A's GDP? $1293 $1717 $301 $704 $310 $374 $611 $117 $1422 $553 $777 $88 $120
- The calculation of a country's GDP encompasses all private and public consumption, government outlays, investments, additions to private inventories, paid-in construction costs, and the foreign balance of trade. (Exports are added to the value and imports are subtracted). Explain how each of the following items are treated in the computation of GDP for 2020. Interest on treasury issued by the Bank of Ghana Social security payments paid to retired employees in Ghana You assisted your parents to weed your family backyard The property income received by a hauler The money received by Martha when she sold her mother’s old blender The monthly allowance a student receives from scholarship secretariat The money received by Matthew Amoako when he bought Afia’s laptop The value of working in progress is $2 billion Asamoah withdraw GHC 5m from his bank accounts to purchase of 1000 shares of GCB Bank stock To protect his employees from the risk of contracting the COVID 19, the…Which of the following statements best describe how economists calculate GDP? Group of answer choices Economists at the Census bureau collect data from surveys sent to consumers, private firms and government agencies and add them up on a yearly basis. Economists at the Bureau of Economic Analysis pull together data on sales, imports, exports, government purchase and investments from various government sources every 3 months. Economists at the Bureau of Labor Statistics collect data from surveys sent to consumers, private firms and government agencies and add them up every 3 months. Economists at the Congressional Budget Office calculate GDP for a given year by adjusting the previous year’s GDP with inflation.The calculation of a country's GDP encompasses all private and public consumption, government outlays, investments, additions to private inventories, paid-in construction costs, and the foreign balance of trade. (Exports are added to the value and imports are subtracted). Explain how each of the following items are treated in the computation of GDP for 2020. Interest on treasury issued by the Bank of Ghana? Social security payments paid to retired employees in Ghana? You assisted your parents to weed your family backyard? The property income received by a hauler? The money received by Martha when she sold her mother’s old blender? The monthly allowance a student receives from scholarship secretariat? The money received by Matthew Amoako when he bought Afia’s laptop? The value of working in progress is $2 billion? Asamoah withdraw GHC 5m from his bank accounts to purchase of 1000 shares of GCB Bank stock To protect his employees from the risk of contracting the COVID 19, the president…
- Using the following national income accounting data, compute (a) GDP, (b) NDP, and (c) NI. All figures are in billions. Category Billions Compensation of employees $226.2 U.S. exports of goods and services 19.8 Consumption of fixed capital 11.8 Government purchases 59.4 Taxes on production and imports 14.4 Net private domestic investment 52.1 Transfer payments 13.9 U.S. imports of goods and services 16.5 Personal taxes 40.5 Net foreign factor income 2.2 Personal consumption expenditures 249.1 Statistical discrepancy 0.0 Instructions: Round your answers to 1 decimal place. a. GDP = $ billion b. NDP = $ billion c. NI= $ billionThe 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…GDP can be computed as the sum of A) all sales that have taken place in an economy over a period of time. B) the total expenditures of consumers and business over a period of time. C) the total expenditures of consumption, investment, and government expenditure on goods and services over a period of time. D) the total expenditures of consumption, investment, government expenditure on goods and services, and net exports over a period of time
- Suppose you are given the following information about some hypothetical economy and its national income accounts. Use this information to answer the questions that follow. (Amounts are in millions of Kshs.) Indirect Business Taxes 459.50 Corporate profits 604.45 Corporate profits taxes 234.70 Retained earnings 165.40 Proprietors' income 519.20 Rental Income 31.05 Net Interest 585.55 Exports 842.85 Imports 1190.20 Income Receipts from rest of world 427.8 Income Payments to rest of world 377.45 Net National Product 6190.4 Government expenditures for Goods and Services 1358.25 Personal current Transfer receipts 871.15 Social Security Taxes (employee & employer) 490.75 Personal Consumption expenditures 4892.85 Gross Private Domestic Investment 1082.45 Disposable personal income 5128.75 a. Find GDP and GNP b. Find depreciation (capital consumption allowance) c. Find National IncomeThe following table shows data on consumption, Investments, exports, imports, and government expenditures for the United States in 2016, 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. Data (Billions of dollars) Consumption (C) Investment (I) 12,757.9 3,035.7 Exports (X) 2,232.4 Imports (M) 2,733.7 Net Exports of Goods and Services Government Purchases (G) 3,276.7 Gross Domestic Product (GDP) MacBook Pro Grade It Now Save & Continue Continue without savingThe following table shows data on consumption, investments, exports, imports, and government expenditures for the United States in 2014, 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. Data (Billions of dollars) Consumption (C) 11,930.3 Investment (I) 2,851.6 Exports (X) 2,337.0 Imports (M) 2,875.2 Net Exports of Goods and Services Government Purchases (G) 3,175.2 Gross Domestic Product (GDP)