Economics (MindTap Course List)
13th Edition
ISBN: 9781337617383
Author: Roger A. Arnold
Publisher: Cengage Learning
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Question
Chapter 8, Problem 5QP
(a)
To determine
Estimate the Real
(b)
To determine
Estimate the Real GDP if there are changes in the non-price factors.
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Create a speech about the relationship of income, saving and consumption to price changes in shopping.
Explain how each dollar spent by consumers throughout the economy ultimately comes back to people in the form of the following:
Rent as it relates to natural resources.
. Interest as it relates to loanable funds.
. Dividends as it relates to business investment.
Wages and salaries.
Which of the following will increase the slope of the demand curve in the goods market to indicate an increase in the level of output and income?
Select one:
a. An increase in autonomous investment.
b. An increase in the marginal propensity to consume.
c. An increase in government spending.
d. An increase in taxation.
Chapter 8 Solutions
Economics (MindTap Course List)
Ch. 8.2 - Prob. 1STCh. 8.2 - Prob. 2STCh. 8.2 - The money supply has risen, but total spending has...Ch. 8.3 - Prob. 1STCh. 8.3 - Prob. 2STCh. 8.3 - Prob. 3STCh. 8.5 - Prob. 1STCh. 8.5 - Prob. 2STCh. 8 - Prob. 1QPCh. 8 - Prob. 2QP
Ch. 8 - Prob. 3QPCh. 8 - Prob. 4QPCh. 8 - Prob. 5QPCh. 8 - Prob. 6QPCh. 8 - Prob. 7QPCh. 8 - Prob. 8QPCh. 8 - Prob. 9QPCh. 8 - Prob. 10QPCh. 8 - Prob. 11QPCh. 8 - Prob. 12QPCh. 8 - Prob. 13QPCh. 8 - Prob. 14QPCh. 8 - Prob. 15QPCh. 8 - Prob. 16QPCh. 8 - Prob. 17QPCh. 8 - Prob. 18QPCh. 8 - Prob. 19QPCh. 8 - Prob. 20QPCh. 8 - Prob. 21QPCh. 8 - Prob. 1WNGCh. 8 - Prob. 2WNGCh. 8 - Prob. 3WNGCh. 8 - Prob. 4WNGCh. 8 - Prob. 5WNGCh. 8 - Prob. 6WNG
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Similar questions
- The most important practice you can do to learn the material in this chapter is to think through the process of moving from one equilibrium to another. For example, what happens when any of the determinants of the components of GDP change? Explain why each step in the process occurs. Use written explanations, supplemented by graphs if you wish, but be sure you explain why.arrow_forwardPlease explain three perspectives related to the consumption.arrow_forwardThe economy experiences an increase in the price level and a decrease in real domestic output. What is a likely explanation? Select one: a. government expenditures decreased b. resource prices have increased c. productivity has increased d. business taxes have decreasedarrow_forward
- 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 ?arrow_forwardHow increasing housing prices in the US to its highest historical levels affect the US economy and the four components of expenditures of GDP.arrow_forwardExplain the relationship between output and income for both an individual and an entire economy.arrow_forward
- 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 theirsarrow_forwardit is possible for any economy to be based entirely on servicesarrow_forwardIn an economy where people spend 80% of their incomes, the government lowers taxes by $5000. Calculate the change in real GDP that results. (Be extra careful to follow numeric instructions; round intermediate steps to four decimal places and your final answer to two. Use a positive number to denote an increase and a negative number (with negative sign) to denote a decrease.)arrow_forward
- Which of the following represent injections into the circular flow of income and spending?(a) Exports and investment;(b) Government spending and imports;(c) Government spending and saving; (d) Imports and saving.In the circular-flow diagram, the goods markets are where: (a) The households purchase goods from firms;(b) Firms purchase goods from government;(c) Firms purchase goods from households;(d) The government purchases goods from households. Money overcomes the problem of a double coincidence of wants inherent in the barter system through its function as a:(a) unit of account.(b) store of value.(c) medium of exchange.(d) standard of deferred payment. The ________ demand for money arises out of the need to hold money as a medium of exchange. This demand for money is a function of ________. (a) precautionary; interest rates (b) transactions; national income (c) speculative; interest rates(d) Precautionary; national…arrow_forwardPlease answer the given four questions related to the market for loanable funds. What effect will an increase in interest rates have on the quantity of loanable funds supplied? There will be no change in quantity supplied. Quantity supplied will decrease. Some lenders will offer more whereas others offer less. Quantity supplied will increase. As interest rate decreases, what happens to the quantity of loanable funds demanded? Some borrowers will demand more funds whereas others will demand less. There will be no change in quantity demanded. Quantity demanded will increase. Quantity demanded will decrease. Which of the terms acts as the "price" in the market for loanable funds? demand capital supply If the projected rate of return for a project is less than the interest rate for a loan that is necessary to complete the project, how will the borrowing business act? The business will proceed anyway, knowing that the return is only an estimate. The…arrow_forwardWhich of the following questions would be studied in the area of microeconomics? Select one: a. What determines the number of hours an individual works? b. Do interest rates affect net exports? c. Will an increase in government spending cause inflation? d. What portion of total spending comes from households in the economy?arrow_forward
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