The expenditure approach to calculating GDP is best expressed by which of the following? A.) C+I+NYC B.) C+I+G C.) C+I+G+NX D.) M-X = (I-S)+(G-T)
Q: Your uncle is very upset because after a recent snow storm he was charged $300 by a private snow-…
A: A price ceiling is the maximum amount that a seller is permitted to charge for a product or service.…
Q: Consider an economy with ongoing inflation with backward-looking expectations, πTE(t) = π(t-1),…
A: As per given information economy is in inflationary situation one hand and on the other hand…
Q: what is A $100 1 0 2 to make two cash flow diagrams equivalent, at i = 10%? A 4 5 6 7 8 0 1 2 3 5 7…
A: Cash flow is the motion of cash inside and out of a company. Cash obtained indicates inflows, and…
Q: Use the following table to answer the question about taxes, where P Price buyers pay, P, Price…
A: We have before and after tax price and quantity for a good. Where before that buyers and sellers…
Q: The money base in an economy is 200bn. The public holds a quarter of it in cash, and the reserve…
A: Money supply is the circulation of the money in the economy , it is depends upon the reserve…
Q: Find the price elasticity for the following demand function Qd = 5 – 0.5P when the price is equal to…
A: Given: The demand function is: Qd = 5 - 0.5P The price is = 2 To Find: The elasticity of demand:
Q: alculate the marginal rate of substitution (MRS12) for the following utility function: U(q1,q2)=…
A: Marginal rate of substitution refers to the slope of an indifference curve. It is calculated as the…
Q: QUESTION 24 Consider the following provision of public good problem: Citizen 1 initial budget: w1 =…
A: Given; Initial budget of citizen 1; w1=$80000Initial budget of citizen 2; w2=$60000Cost of public…
Q: If a country closes off to trade and notices that the number of firms in an industry doubles in…
A: The measure that depicts the exchange of goods and services among countries in exchange for money is…
Q: P= -4Qd +50 P = 40 +10 A tax of 8JD is imposed on every unit sold Answer the question in accordance…
A: The demand curve is determined by the relationship between the price of a good and the amount or…
Q: Three college students consider the option of forming a lawn care and landscaping business during…
A: Answer
Q: Given the Cobb Douglas Production Function of F(K,L) = AKtalphaLt(1-alpha) and assume that A = 3, t…
A: 1) F(K,L) = AKtalphaLt(1-alpha) F(K,L) = 3K0.5L0.5 Let F(K,L) =Q For short run minimum cost…
Q: Consider the preferences represented by the following indifference curves. These preferences are…
A: Indifference curve: It refers to the curve that helps in the combination of showing two goods. The…
Q: 3. Suppose that Poland Spring has the following production function for bottled water: Q=K+10L 1/2…
A: We use the following formulas: 1) Marginal Product of Capital (MPK)= ∆Q∆K = dQdKThe marginal product…
Q: Consider the model of competitive insurance. Peter is a risk averse individual with the utility…
A: A individual (the Policyholder) and an insurance company enter into a binding legal contract in…
Q: Assuming that the average duration of First National Bank's $100 million assets is five years, while…
A: Formula to be used: ∆NW = [ (-Da) * ∆i / 1+ i * assets vale ] - [ (-Dl) * ∆i / 1 + i * liability…
Q: Preliminary data: Confectionery "cupcake problem"; the data on recent 25 days are given the below…
A: Answer -
Q: Suppose a bank has $200 million in checking account deposits with no excess reserves and the…
A: Required reserves ratio is the proportion of deposits banks must hold as reserves.
Q: Jane spends $1,200 on a used computer. How will this calculation effect GDP? A.) Consumption…
A: Gross domestic product (GDP) measures the market value of final goods and services produced during a…
Q: The maintenance cost of a new equipment is projected to start at the end of the 1st year at an…
A: We have given that First-year end maintenance cost A1 =8000 Then maintenance cost is increased by a…
Q: Juan is 25 years old today. A year from now (i.e., on his 26th birthday) he will deposit $7,000 in a…
A: Compound interest is calculated by multiplying the initial principal amount by one plus the annual…
Q: The five most important variables that determine the level of consumption are O wealth, savings…
A: A consumption function defines the relationship between the level of consumption and various factors…
Q: If the effective annual interest rate is 10.51% and the nominal annual rate is 10.25%, compounding…
A: An effective annual interest rate is the genuine profit from an investment account or any premium…
Q: What is the future amount of P 5,000 if the single payment present worth factor is 0.253?
A: Given PV = 5000 and Present worth factor = 0.253
Q: 1. Let Amy derive utility each from housing, h, and a consumer good, z, with the following utility…
A: Utility function : U = h1/3 z2/3 h* = M/3ph , z* = 2M/ 3pz Income = 160 Commute Cost = 40 Pz = 1…
Q: 7) Suppose an economy is given by the following equations: C = 100+ 0.75Yd I = 125 - 5i G = 100 T =…
A: Equilibrium output is produced at the intersection of IS and LM curves. IS shows equilibrium in…
Q: 2. Graphically show how each of the following events affect nominal interest rates. (a) Recession…
A: Answer- Nominal Interest rates = Nominal interest rates is the sum of inflation rates and real…
Q: wers, you should, where appropriate, be referring to concepts such as the ma anical substitution,…
A: Indifference curve shows the different combinations of two goods that provide the same level of…
Q: Use the following diagram for a monopoly to answer the questions. Price and cost per unit MC $30 ATC…
A: The monopoly market is characterized by the presence of single firm. The single firm is price maker.…
Q: Using the table above, find out the marginal cost of the 46th book produced, in dollars.
A: Introduction Marginal cost is change in the total cost when one additional unit is produced.
Q: Loan payments of $2,750 due 96 days ago and $3,100 due today are scheduled to be repaid with a…
A: Simple Interest: A = P (1 + r * t) ,where A = Amount at end P = Principal r= Rate of interest, and t…
Q: The following are examples of Barriers for Entry that could lead to Monopoly power, EXCEPT:…
A: The structure of a market where there are a single or few sellers that control the market and are…
Q: (1/F) Since the beginning of 2022, the return on the stock market decreased and volatility…
A: Stocks are off to a bad start in 2022.
Q: What are Nash Equilibria in the following game? Select all that apply. Pizza Jazz 7 meats Seafood…
A: Nash equilibrium is a set of strategies which leave no incentive for players to deviate from their…
Q: list and describe various economic and societal factors that affect demand and pricing for health…
A: People must look for a service they can afford and are prepared to pay for in order to satisfy…
Q: A) Discuss health insurance contract?
A:
Q: According to macroeconomic theory, in a perfectly competitive market a company: Group of answer…
A: Perfect competition is a perfect kind of market structure where all customers and producers include…
Q: 1) (a) Find the mixed strategy equilibria of the following game: Column Left Right Up 8,4 4,0 Row…
A: Game Theory deals with the concept of decision making where two players play or make decisions based…
Q: For each of the following scenarios, determine whether the decision maker is risk neutral, risk…
A:
Q: For a monopolist facing a linear demand function (P = a - bQ) for their product and a constant…
A: Given Demand equation P =a-bQ ... (1) Marginal cost MC=c+ Excise tax=6
Q: Based on class discussion, the following are corrected descriptions about sectors and dynamics in…
A: In the labor market, the difference in wages among people is due to their skills, knowledge and…
Q: Suppose, in the New Keynesian open economy model, that there is a negative shock in future total…
A: In an open economy, there are 4 sectors, that is the household, the producers, the government and…
Q: The demand for wine in town A is actually pA=40−1/2qA; NOT 12qA. Coudl you please let me know how…
A: Town A:pA=40-1/2qANow,TR=p×qTR=(40-1/2qA)qTR=40qA-0.5qA2... (1/2=0.5)From this, we can determine…
Q: Given a recessionary gap, the Federal Reserve will use monetary policy to decrease; increase…
A: Mainly, there are two types of gaps in economics: 1. Inflationary gap 2. Recessionary gap
Q: (a) One of your colleagues is looking at the yield curve expressed by the information below and asks…
A: The biased expectations theory is a theory of the term design of financing costs. In biased…
Q: If ten years ago the prices of the items bought last month by the average consumer would have been…
A: Here, it is given that the price of the items bought by a consumer in ten years ago was much lower…
Q: What are the main components of measuring GDP with what is demanded? (briefly)
A: The market price of all finished (final) items and services generated in a country's economy during…
Q: ) 14) According to the absorption approach what happens to China's trade balance following an…
A: Introduction Absorption and monetary approach both are related to balance of payment adjustments.…
Q: 1. Yesterday, the price of gloves was $4 a box, and Reena was willing to buy 10 boxes. Today, the…
A: Price elasticity of demand is a measurement of the change in consumption of a product in relation to…
Q: True or False ays es price.
A: Short term benefits are boosted at the ideal creation level. It is the result where the negligible…
-
The expenditure approach to calculating
GDP is best expressed by which of the following?A.) C+I+NYC
B.) C+I+G
C.) C+I+G+NX
D.) M-X = (I-S)+(G-T)
Step by step
Solved in 2 steps
- a) Give the definition of GDP and explain what items are not included in its calculation?TTT Consumption Government Real GDP, Y expenditure, C Investment, I expenditure, G Exports, X Imports, M (trillions of (trillions of 2009 dollars) 2009 dollars) 2009 dollars) 2009 dollars ) 0.00 0.75 (trillions of (trillions of (trillions of (trillions of 2009 dollars) 2009 dollars) 0.00 0.00 1.75 1.00 0.75 3.00 2.00 1.75 1.00 0.75 6.00 4.00 1.75 1.00 0.75 1.50 9.00 6.00 1.75 1.00 0.75 2.25 12.00 8.00 1.75 1.00 0.75 3.00 The above table gives data for the nation of Mojo. The amount of autonomous expenditure is the equilibrium real GDP is and when real GDP equals $9 trillion the unplanned inventory changes equal O $2.75 trillion; $3.0 trillion; $6.0 trillion O $3.5 trillion; $6.0 trillion; $1.75 trillion $2 trillion; $9.0 trillion; $3.0 trillion $3 trillion; $12.0 trillion; $7.25 trillionThe measure to measure the value of the total final production in a country during a year is the gross domestic product. Which variables determine the gross domestic product? What are the two approaches that are used to measure gross domestic product?
- (a) Calculate GDP using the Income and (all figures are in billions of dollars): Approach. Amount ($) 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 1,235.7a)Suppose you are given the following information about the New Zealand economy, with the values in billions of Dollars. What is the GDP of New Zealand? Personal consumption $680Private investment $370Government expenditure $430Exports $710Imports $295b) Discuss 2 transactions that are not included in the calculation of GDP and provide an example for each.1. Calculate GDP using the Expenditure Approach. (all figures are in billions of dollars):
- Private consumption expenditure (C) 150 Indirect Taxes 20 Gross private investment Expenditure (I) 60 Subsidies 5 Government Expenditure (G) 40 Transfer payments to households 10 Exports (X) 35 Personal Income Taxes 25 Imports (M) 30 Undistributed dividends 5 Net factor income from the rest of the world 5 Depreciation 5 a) Find Net National Product and Disposable Income b) Do you think GDP shows everything about the wellbeing of a country?Which of the following transactions counts towards Australia's GDP? (All activities take place in Australia.) a) Aiko buys a new fridge to replace an old one damaged in the flood. b) Boaz volunteers to clean up the mud after a flood. c) Centrelink (Australian government welfare services) makes a flood relief payment to residents of Lismore (a town in Australia). d) All of the above.(a) Which of the following are included and which are excluded in calculating this year's GDP? Provide a brief explanation in ONE LINE ONLY in each instance. (a) Stephanie sues her former client for harassment and hires a lawyer. (b) Geoffrey is offering his family members hair styling at home due to COVID -19 for free while earlier the family members were getting them done at salons. (c) Covid-19 relief payments.
- A) Write the formula for GDP (expenditure), and explain in detail eachvariable. Be sure to include types of goods/services that go into each category. B) Why are goods and services counted in GDP at market value?Are there any disadvantages or problems in using market values to measureproduction?Question 2 - Computation and Short AnswerStudents are required to show ALL workings to be awarded the full marks for eachpart of this question.(a) Calculate GDP using the Income and Expenditure Approach. (all figures are in billions of dollars):Item Amount ($)Government purchase of goods and services 1,721.6Exports 1,096.3Receipts of factor income from the rest of the world 382.7Depreciation (consumption of fixed capital) 990.8Net fixed Investments 688.2Corporate income taxes 265.2Consumption expenditures 6,739.4Indirect business taxes 664.6Imports 1,475.8Payments of factor income to the rest of the world 343.7Inventory change 56.5Social security contributions 702.7Undistributed corporate profits (retained earnings) 130.3Government transfer and interest payments 1,366.3Personal interest payments 286.2Personal taxes 1,235.7COMPONENT R millions Consumption expenditure (C) 9 000 Investment (I) 6 500 Government spending (G) 7 000 Exports (X) 1 800 Imports (Z) 2 400 Depreciation 700 Foreign payment to the rest of theworld 300 Foreign payment from the rest of the world 250 Q1. Determine the value of the country’s NNI (Net National Income) atmarket price. Q2. If it is predicted that the GDP will increase to 22 000 in 2020,calculate the growth rate between 2019 and 2020.