Which of the following is an example of an investment expenditure? A   Steve purchases a new power washer for his gutter cleaning business. B   Margaret buys a new home. C   A florist installs new energy efficient refrigerators. D   All of these are examples of investment spending.

Q: Distinguish the final goods or services, intermediate goods or services, and capital goods?

A: Intermediate goods are defined as those goods which are a part of the final good as they have been…

Q: That part of income which is either consumed or saved by all the households in an economy is called…

A: Savings refer to the part of income set aside to use in the future. Consumption spending refers to…

Q: 35. An economy is in equilibrium. Find marginal pro Autonomous consumption expenditure 100.…

A: The national income is equal to the sum of total expenditure incurred by various sectors of the…

Q: Which of the following goods would be considered part of consumption (C) by the BEA? The purchase of…

A: GDP by expenditure approach = Consumption + Investment + Government spending + Net exports

Q: Explain how to derive total expenditure curve

A: Aggregate expenditure(AE) is indicating the gross domestic production of the country. The GDP can be…

Q: Suppose the following information was published by the Australian Bureau of Statistics i

A: In the calculation of gross domestic product, there are some items that can not be included such as…

Q: Refer to the information provided in Table below to answer the question. Aggregate Income ($…

A: Economics as a subject deals with the allocation of scarce resources among humans with unlimited…

Q: Calculate consumption if APC is 0.88 and income is $400

A: The information being given is:- Average propensity to Consume = 0.88 Income = $400 Consumption = ?

Q: a) With the aid of a consumption function, highlight the main determinants of consumption.

A: The relationship between the spending of consumer and it's determinants which effects this describes…

Q: How to derive the total expenditure curve?

A: Total expenditure is defined as the expenditure that all the sectors of the economy are planning to…

Q: In an economy the change in income is $6600 and change in investment is $3600 Calculate multiplier

A: The information being given is:- Change in income = $6600 Change in investment = $3600 We have to…

Q: The following table shows data on consumption, investments, exports, imports, and government…

A: here we calculate the Net export and GDP by using the following table which are as follow-

Q: The table below details the composition of an economy's GDP by spending category. Category…

A: Consumption includes spending on durable, nondurable and services. Construction of new home is a…

Q: U.S. business inventories increase Business inventories in the United States rose​ 0.4% in July…

A: 1) A planned increase in inventories​ brings a decline in the firm's production along with a decline…

Q: What is the characteristic of ‘daruriyyat’ spending?   Basic necessities Refinements Luxuries…

A: Daruriyyat Spending:-  Spending on fundamental requirements which are critical to general societal…

Q: Which of the following is considered investment by economists? O I purchased a $10,000 Treasury bond…

A: Investment in economics is the purchase of capital goods or goods that stimulate production of other…

Q: . What will be the level of consumption spending at an income level of 36? a) 30 b) 24 c) 28 d) 16…

A: The answer will be considered through graph:

Q: The circular flow of income diagram shows: a) how households sell goods to firms b) how firms sell…

A: In the circular flow diagram, households sell their factors of the production to the firms.…

Q: (Aggregate Expenditure) What are the components of aggregate expenditure? In the model developed in…

A: Components of aggregate expenditure are consumption and investment along with net exports.

Q: Lori is a student who teaches golf on the weekend and in a year earns $20,000 after paying her…

A: An individual earns wages or salary by supplying his labor services in the labor market. The wealth…

Q: What is the level of private consumption in GDP is 10,000, investment is 2,900, government spending…

A: The GDP is the value of all the final goods and services that are produced in an economy in a given…

Q: Consider the simple circular flow diagram. The amount of consumer expenditures on goods and services…

A: Circular flow refers to the continuous and recurrent transfers of money among households and…

Q: The change in consumption is $300 and change in income is $1000 Find the value of MPC

A: The marginal propensity to consume (MPC) measures the proportion of a unit of the consumer's income…

Q: Calculate consumption expenditure given that:- APC = 0.16 Income = $5000

A: The data presented in the question above is:- Average propensity to consume = 0.16   Income = $5000…

Q: Is the purchase of equipment or machinery a part of consumption or investment? Why?

A: The concept of allocation of money with having an expectation in the future of a positive return or…

Q: The figure shows the flows of expenditure and income on Lotus Island. In 2016, R was $7 billion; W…

A: We know that, Total Expenditure- C+I+G+NX Here, C= W, I= J, G=U and NX= Z So, Total Expenditure = W…

Q: uan owns a pizza shop. In 2021, Juan spent $20,000 upgrading the oven.  This is an example of _____…

A: Answer is given below

Q: The circular flow shows that Select one: O A. GDP equals aggregate income. O B. aggregate…

A: Circular flow: The circular flow explains the process that determines the national income and…

Q: consumes shoes and houses. In the table below are data for two different users.   2000 2001 Price…

A: Nominal GDP measures the market value of goods and services measured at current prices whereas it…

Q: Calculate the value of change in consumption if change in income is $2200 and MPC is 0.34

A: (Q) Calculate the value of change in consumption if a change in income is $2200 and MPC is 0.34

Q: Potential GDP Aggregate expenditure AE, E, 45° Y. Real GDP (Y) On the 45 degrees line: GDP is equal…

A: We have 45° line for GDP and aggregate expenditure.

Q: Attached is a table, please use that to answer these:   1998 Gross Domestic Product Answer…

A: Gross domestic production (GDP) refers to the total value of all final goods and services that…

Q: If Mr. Keating quits his job as a teacher to homeschool his own children, GDPa. stays the same…

A: GDP is the total sum of the economic activity inside the nation's territorial limits for a given…

Q: An example of "investment" in computing real GDP using the expenditure approach is the purchase of O…

A: -A 100 year old house bought is already included in GDP when it was newly built . They are already…

Q: uestion 1: In an economy C = 350 + 0.75 Y is the consumption function where C is consumption…

A: We measure the output of an economy using the gross domestic product. GDP or the gross domestic…

Q: It is the year 2020. Natalie purchases a home that was built in 2020. In GDP accounting, this…

A: Natalie purchases a new home in 2020.

Q: In an imaginary economy, if the disposable income is 200 and the consumption expenditure is 220,…

A: Disposable income refers to income which is  left over after paying off personal taxes.  Disposable…

Q: a) GDP captures all income created in the economy, GDP also captures all expenditures made in the…

A: GDP means total market value of goods and services produced domestically.

Q: What is total expenditure in an economy? Total expenditure is equal to expenditure ______. A. on…

A: Total expenditure in an economy is also referred to as its GDP. Total Expenditure includes…

Q: What is the equilibrium in this economy? Planned Net Exports (NX) Government Change in Real GDP (Y)…

A: equilibrium income: When an economy or company has an equivalent amount of supply and consumer…

Q: im having a little toruble with the following question and answer: The Commerce Department reported…

A: Gross Domestic Product (GDP):It is the primary indicator which shows the health of an economy. It…

Q: Which of the following is NOT accounted in the expenditure approach? a. Food b. Furniture c. Used…

A: GDP is the value of all final goods and services produced in an economy over a period of time. There…

Q: Calculate the equilibrium level of output (income) for the following economy: Consumption C =…

A: Given: Consumption C = 1500+0.75Y         Investment I = 500    Generally, equilibrium level of…

Q: Potential GDP Aggregate expenditure AE, E, 45° Real GDP (Y) On the 45 degrees line: O A. GDP is…

A: Aggregate expenditure is the sum of consumption , investment, government spending and net exports in…