Depreciation = $479 Gross private domestic Investment (I) = $516 Government spending = $924 Imports = $447 Personal Consumption Expenditures = $2,966 Exports = $427 a. How big is the GDP? b. How big is National Income
Q: Suppose the CPI in year 1 is 137. Given that the inflation rate is 0.3% in year 2 and 4.2% in year…
A: CPI stands for Consumer Price Index, which is a tool that measures the average alteration over time…
Q: 2. Consider a competitive firm which uses three inputs K (capital), L (labor), and A (office space)…
A: Given production function Q=AK23LIt can be wriiten as :Q=A*K2/3L1/3Cost functionC=1*L+2*K+4*A
Q: Bottom of Bracket $0 $49,692 $99,384 173,922 Top of Bracket $49,692 $99,384 $173,922 Rest of Income…
A: Marginal tax rate shows the tax rate fall under the tax bracket given in the table. Average tax…
Q: Which statement regarding market 2 is true? Deadweight loss due to the tax is area C. After the tax,…
A: An excise tax shifts the supply curve upward by the amount of the tax. This results in consumers…
Q: Suppose that Shen, an excellent high school basketball player, is being recruited by Duke University…
A: Introduction Consumer surplus is the gap between what consumers are willing to spend and what they…
Q: 0 Question 17 Please work through the following example: Suppose you collect coffee mugs and have…
A: In economics, people use various mathematical and statistical tools to analyze cost and benefits…
Q: Assume a perfectly competitive market with no externalities. The demand curve is P =52 - 0.06×Qd.…
A: Total Surplus A market's overall surplus serves as a gauge of the general well-being of all members.…
Q: In the United States, 2018 was a bad year for growing wheat. And as wheat supply decreased, the…
A: Elasticity of demand measures the responsiveness of percentage change in quantity demanded due to…
Q: 1. Given the utility function U = 1/2 1/3 (a) Determine the value of the marginal utilities (b)…
A:
Q: Draw indifference curves for the following sets of preferences and indicate the direction in which…
A: Indifference curve shows the different combinations of two goods that yield the same level of…
Q: Did i do this properly?
A: Budget constraints shows the relationship between the two goods , their prices and the income of…
Q: The unemployment rate is defined as the percentage of unemployed workers in the labor force:…
A: Introduction When a person is able and eager to work, but they are not employed, they are considered…
Q: Suppose the inflation premium is 9.50 percent and the nominal interest rate is 4.75 percent.…
A: Inflation premium: Investors are often afraid of loss as the inflation rate may vary over time.…
Q: Of the methods for covering risk, which is essentially a dollar for dollar shift of consumption…
A: Risk is the possibility of experiencing harm, loss, or negative results. It refers to uncertainty…
Q: Based on the principles of demand and supply, how is the rising price of gassoline determined?…
A: The principle of demand and supply is a fundamental concept in economics that explains how the…
Q: Garfield enjoys pizzas and hanging out (leisure). He sleeps 8 hours per day. Of the remaining 16…
A: Since you have posted a question with multiple sub-parts, we will solve the first three subparts for…
Q: When there are two large open economies in the world, if capital goods become relatively cheaper…
A: The current account is a major component of a country's balance of payments account, which is a…
Q: Use the wage curve and the profit curve to show the equilibriumin a model of the labour market.…
A: Wage curve and the profit curve to show the equilibrium in a model of the labor market. DIAGRAM…
Q: in the market for loanable funds, there is a demand and supply of loanable funds represent as the…
A: Economic equilibrium is a state of an economy where economic forces are balanced.
Q: Suppose the utility function for goods x and y is given by utility = U(x, y) = xy + x a) Calculate…
A: Utility maximization refers to making economic decisions that guarantee the greatest level of…
Q: Consider the following table: Quantity 0 1 2 3 4 5 6 7 8 9 0 10 TC TFC TVC ATC 20 6 or 7 1 or 2 7 or…
A: Economies of scale exist when average cost curve decreases as output increases Diseconomies of scale…
Q: An increase in income raises consumption at each price, so the demand curve shifts to the left (b)…
A: The normal good refers to the good which is positively related to the income. When income rises, the…
Q: Two processes can be used for producing a polymer that reduces friction loss in engines. Process T…
A: PW=C0 + C1(1+r)+C2(1+r)2+.........C2(1+r)n
Q: ALL parts needed please
A: SKM: SKM or Simple Keynesian Model describes the AE-AS equilibrium in the short run. Aggregate…
Q: What is the difference between discretionary fiscal policy and automatic stabilizers? How are…
A: Introduction Economy is the organized system of production, distribution, and consumption of goods…
Q: 1. The following table contains the GDP per capita of selected countries. GDP per capita in 2020 (US…
A: 1) Macroeconomics is the branch of economics that studies how an economy functions as a whole.…
Q: The concept of nonrivalry says that one's person consumption of the good does not limit it for other…
A: The circular flow model is a simplified representation of how the economy works. It illustrates the…
Q: What happens to Robinson’s budget line? Show on the graph. 5. Try to write the budget line…
A: The budget line equation shows how many units of the concerned goods the individual can afford. It…
Q: If the PPP for yen per dollar is 243.77 and the Nominal exchange rate is 226.74. How would you…
A: The real exchange rate (RER) is the rate at which the goods and services of one nation can be…
Q: If a change of 15% in price of good X, results in a change in demand for good Y of 5%, then: (a) The…
A: Elasticity of demand is used to measure the responsiveness of the quantity demanded of a good due to…
Q: What are 2 interpretations of the slope of a regression line?
A: Regression is a statistical technique for simulating how one or more independent variables and one…
Q: Years lived with disablity (YLDs) age-standardised per 100,000 population 500 Low back and neck pain…
A: A bar graph is a graphical depiction of information, amounts, or statistics using bars or stripes.…
Q: Hot Air Balloon Rides is a single-price monopoly. Columns 1 and 2 of the table set out the market…
A: A single-price monopoly is a type of market structure where a single seller or a group of sellers…
Q: If a project costs $110,000 and is expected to return $29,500 annually, how long does it take to…
A: Given that; Cost of the project=$110000 Expected return=$29500 interest =15% The payback period is…
Q: A Price Floor of $27 has been set by the Soccer ruling body for all games and is shown on the chart…
A: Demand curve is the downward sloping curve Supply curve is the upward sloping curve. Equilibrium…
Q: Determine the ordinary simple interest on P700.00 for 8 months and 15 days if the rate of interest…
A: Given, Principal amount = 700 Total days = 8 ×30+15 = 255 ( t = 255/360) Rate of…
Q: Consider a fictional price index, the College Student Price Index (CSPI), based on a typical college…
A: CSPI stands for College Student Price Index. It is a price index. There is a market basket that…
Q: The following diagram shows supply and demand in the market for laptops. 150 135 120 PRICE (Dollars…
A: Introduction Supply and demand is an economic model that explains the relationship between product…
Q: "Inflation and Unemployment are the twin evils of a society". Discuss in details pls
A: The term unemployment indicates individuals who are willing to work and search for a job but would…
Q: A new flu vaccine is approved, what will happen to the equilibrium price and quantity of the flu…
A: The equilibrium price is determined where the demand and supply are equal. change in the equilibrium…
Q: does canada need additional unemployment insurance payments to workers who are laid off because of…
A: Introduction The global economy is becoming increasingly interconnected, and international trade is…
Q: When expected future marginal product of capital increases in a small open economy with free capital…
A: Introduction The extra production a business experiences after adding one unit of capital is known…
Q: he graph plots skirts per day versus dresses per day. A diagonal line starts at (0, 4) and ends at…
A: A production possibility curve depicts the combination of two goods that can be produced using the…
Q: 1. Which of the below statements are false? The present value of the interest tax shield is the same…
A: Personal tax is a tax that is levied on individuals based on their personal income, wealth, or…
Q: A. The relaxation of immigration law that caus an influx of immigrants into the U.S. B.The age at…
A:
Q: If the demand of soup increases as the price of bread increases, the two goods would be classified…
A: Cross elasticity of demand refers to fhe relationship between the price and quantity demanded of two…
Q: A new Telsa manufacturing plant in Sothern Ontario plans to start manufacturing Telsa Model 3 based…
A: Profit maximization is process which business firms undergo to ensure the best output and price…
Q: Assume that the demand for films is given by Q = 45 − 2P and the supply is given by Q = 15 + P. What…
A: To find the equilibrium price and quantity of films, we need to find the price at which the quantity…
Q: 1. The country Egalia has the following production function: Y = 500K^0.25L^0.75, where K denotes…
A: In economics, production function is a way of calculating what comes out of production to what has…
Q: Suppose a market with two customers. Their demands are specified by: Q1 = 100 - 2P and Q2 = 150 -…
A: While the equilibrium price is the single cost where the intentions of both consumers and…
Depreciation = $479- Gross private domestic Investment (I) = $516
- Government spending = $924
- Imports = $447
- Personal Consumption Expenditures = $2,966
- Exports = $427
a. How big is the
b. How big is
National income is the total monetary value of all goods and services that are produced by a nation in a specific year. In other words, it is the sum of all the factor income that is generated during a production year.
Step by step
Solved in 2 steps
- Country A has export sales of 20 billion, government purchases of 1,000 billion, business investment is 50 billion, imports are 40 billion, and consumption spending is 2,000 billion. What is the dollar value of GDP?What are the main components of measuring GDP with what is demanded?Use the following data to answer the questions below: Category Consumption Depreciation Retained earnings Gross investment Imports Exports Net foreign factor income Government purchases a. How much is GDP? Instructions: Enter your responses as a whole number. $ $ billion b. How much is net investment? $ Billions of Dollars $200 20 12 30 60 billion c. How much is national income? billion 50 10 80
- Billions of Dollars 6,500 1,900 1,200 Consumption Gross private domestic investment Government spending less transfer payments Imports Exports Depredation Indirect business taxes and transfers 600 500 1,500 750 17) Using the above table, the GDP is (in billions of dollars) A) 10,200. B) 8,200. C) 8,900. D) 9,500.Answer the relevant questions about an economy with the following information.a. Gross Domestic Product = 8,000b. Net External Factor Revenues = 500c. Gross Investments = 1,400D. Net Investments = 1,150to. Net Indirect Taxes = 1,200 I. What is the level of Gross National Product?ii. What is the Domestic Income level?What is the relative importance of consumption spending (C) in aggreagte demand and some factors that affect it? What is the relative importance of investment spending (I) in aggreagte demand and some factors that affect it? What is the relative importance of government spending (G) in aggreagte demand and some factors that affect it? What is the relative importance of Net Export (NX) (Net Export = spending on exports (X) - imports (M)) in aggreagte demand and some factors that affect it?
- Assume you have the following data for a hypothetical country for a specific year (in billions of ZAR):Wages and Salaries: R2,500Interest: R300Rent: R200Profits: R1,000Taxes (Indirect Taxes Minus Subsidies): R400Depreciation: R500Given the data above, which of the following methods of calculating Gross Domestic Product (GDP) may beused?A. Expenditure approachB. Income approachC. Product approachD. Trade approachConsider the following hypothetical data for the Canadian economy in 2012 (all amounts are in billions of dollars). Assume any unstatec Category Value Consumption Government spending Gross private domestic investment Exports Imports Depreciation (CCA) $385 304 106 140 111 68 Indirect business taxes 25 a. Based on the data, calculate the following values: (Enter your responses as integers) i. Calculate GDP: S billion. . Calculate NDP: $ billion i. Calculate NNI: $ billion. Enter your answer in each of the answer boxes.Question 1 In a simple economy, suppose that all income is either compensation of employees or profits. Suppose also that there are no indirect taxes. Calculate gross domestic product from the following set of numbers. Show that the expenditure approach and the income approach add up to the same figure. Consumption $9500 Investment $3000 Depreciation $1750 Profits $2400 Exports $850 Compensation of employees $11500 Government purchases $3200 Direct taxes $1200 Saving $1600 Imports $900
- rerer to the information provided in table 4 below to answer the question(s) that follow. Table 4 $Billions Depreciation Receipts of factor income from the rest of the world Government purchases Imports Payments of factor income to the rest of the world Net private domestic investment Personal income taxes 20 40 150 50 40 160 80 Personal consumption expenditures Dividends 700 10 Exports Amount of national income not going to households 70 30 Referring to table 4, calculate a. The values for GDP, GNP, and NNP. b. The values for national income, personal income, and disposable personal income.Question 2 - Computation and Short AnswerStudents are required to show ALL workings to be awarded the full marks for eachpart of this question.(a) Calculate GDP using the Income and Expenditure Approach. (all figures are in billions of dollars):Item Amount ($)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 1,235.7Need help with this. Thank you 1. Explain why the Government Spending (G) component of GDP falls short of actual (total) government outlays or expenditures. - If Depreciation = $479 Gross private domestic Investment (I) = $716 Government spending = $924 Imports = $547 Personal Consumption Expenditures = $2,966 Exports = $427 a. How big is the GDP? b. How big is National Income?
