Q: There are three firms In an economy: A. B, and C. Firm A buys $350 worth of goods from firm B and…
A: *ANSWER :- *a) GDP is the addition of value of goods and service minus purchase of intermediate…
Q: Position each of the following eight terms in the UK’s circular flow of income diagram below:…
A:
Q: Classify each of the following as IN AFRICA's 2020 GDP or NOT IN AFRICA's 2020 GDP. Crude oil (used…
A: GDP is the measurement of the market value of all final goods and services produced within an…
Q: Evaluate the following statement: Even if the prices of a large number of goods and services in the…
A: It is absolutely true to say that, "Even if the prices of a large number of goods and services in…
Q: The following table gives data for a small country, Magnolia: Use the data to calculate GDP for…
A: National Income refers to the total income that is derived from the economic activities in a…
Q: Which of the following are included in the year’s GDP? which are excluded? Explain your answers The…
A: GDP is the total market value of all the final goods produced in an economy. It measures the…
Q: Which of the following best defines aggregate demand? It is the total amount spent by all consumers,…
A: National income refers to the total amount of money earned within a nation.
Q: Consider a simple two-sector economy containing manufacturing and agricultural industries.…
A: Primary industry sector of a nation's economy includes agriculture, forestry, fishing, mining,…
Q: All of the following are components of the expenditure approach to measuring GDP except from: Group…
A: The correct option is : Car dealer in Iowa being paid his monthly salary
Q: Define GDP. Identify the four components of GDP, used by government economists, when using the…
A: GDP: The gross domestic product i.e. GDP is the value of all finished goods and services or products…
Q: 25. COVID has badly affected the world economies. Most of the countries are reporting a significant…
A: Microeconomics:- Microeconomics is that part of economics which is concerned with the behavior of…
Q: TRUE or FALSE. The household sector can outbid the office sector & manufacturing sector in areas…
A: The household sector is the sector that includes the population that satisfies their needs and wants…
Q: Using the table below, calculate GDP for a particular year. Wages and salaries $4,000 Government…
A: Here, information about the components of income and expenditure method of income are given using…
Q: Domestic GDP Expenditure Exports Imports Total Expenditures (Y) C + I + G (X)…
A: The expenditure approach is the most common method in calculating GDP. Under expenditure approach…
Q: For the purpose of calculating GDP, investment is spending on a. stocks, bonds, and other…
A: GDP is defined as the total production of all goods and services within territory of the country in…
Q: f a good produced this quarter goes into inventory, then it is included in this period’s GDP. If it…
A: Gross Domestic Product(GDP) is the value(VOO) of final goods and services(G&S) produced by…
Q: Fill in the blanks: GDP = The ______________value of all ___________ goods and services…
A: Note : Since the question contains multiple sub parts , only the first three sub parts shall be…
Q: A good is produced by a firm in 2018, added to the firm's inventory in 2018 and sold to a household…
A: Economics refers to the study of the behavior of individuals and firms when the resources are…
Q: economy, firms tend to hold 30% of output as inventory. i. If in a period 1, total output is 200…
A: Inventory is the unrefined substances used to create products as well as the merchandise that are…
Q: Assume a three-sector economy where: Y= C+I+G, C=C0 + bY, and I=I0= 83; G=G0 =27. Assume further…
A: In three sector economy, equilibrium occurs at Y = C + I + G. ------- Where C is the consumption…
Q: An Indian citizen living in the US builds a new house in Spokane. In GDP calculations, this would be…
A: Gross domestic product (GDP) measures the aggregate of all the goods and services produced within…
Q: Solve for the following (provide solutions) 1. Equilibrium Output (Y*) 2. The consumption level…
A: The equilibrium level of income in a Keynesian cross model is determined by the intersection of 45…
Q: An economy consists of three industries: an agricultural industry, a mining industry, and a…
A: An economy consists of three industries: an agricultural industry, a mining industry, and a…
Q: Consider an economy with two firms. Firm A produces cotton and firm B produces cotton swabs. In a…
A:
Q: ased on this definition, indicate which of the following transactions will be included in (that is,…
A: The variable that includes the monetary value of final goods and services that are being produced…
Q: Recent economic reports forecast an increase in the interest rate, which likely increases…
A: Aggregate demand is affected by the change in the rate of interest. Higher rate of interest leads to…
Q: Assume an economy with two firms. Firm A produces wheat and firm B produces bread. In a given year,…
A: "Gross domestic product or GDP represents the market or monetary value of all the final commodities…
Q: The agency responsible for compiling the National Income Product Accounts for the U.S. economy is…
A: In the United States, different authorities are built ot established to deal with specfiic situation…
Q: The University of Chicago, a privately-owned school, is currently building a new hospital. This…
A: Capital investment:- It can be defined as the amount that is invested by the companies to continue…
Q: The statement that total sales by businesses were up 0.3 percent means that GDP ______ because…
A: Gross Domestic Product (GDP):It is the primary indicator which shows the health of an economy. It…
Q: hich of the following would be included in the level of an economy's GDP? Select one: a. Private…
A: The GDP is best defined as the total of all value-added created in an economy. The…
Q: Consider an economy with three sectors: Fuels and Power, Manufacturing, and Services. Fuels and…
A:
Q: Study the alternatives given below and identify the one that is not an example for macroeconomics.…
A: Economics is divided into two categories, namely: Macroeconomics: It is concerned with the economy…
Q: Consider an economy with three sectors: Fuels and Power, Manufacturing, and Services. Fuels and…
A: * Solution :-
Q: Classify each of the following as IN Africa's 2020 GDP or NOT IN Africa's 2020 GDP. Cars produced in…
A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…
Q: From 2009 to 2019, suppose that GDP increased by 25 percent. Real GDP increased by 15%. The overall…
A: The GDP is the measure of the final and total value of the final goods and services produced within…
Q: Which of the following is true about the components of GDP? When we buy stocks, this is economic…
A: GDP is defined as the market prices of all goods and services produced in a domestic country in a…
Q: Place each of the following transactions in one of the four components of expenditure: consumption,…
A: GDP by Expenditure Method = personal consumption Expenditure + Gross private Investment + Government…
Q: Evaluate the following statement: Even if the prices of a large number of goods and services in the…
A: Gross Domestic Product (GDP) refers to the value of goods and services that are produced inside a…
Q: Which of the following will not cause an increase in equilibrium GDP? a) an increase in government…
A: GDP is the value of final goods and services produced in the economy within a given period of time.
Q: Professor Jung grows fruits and vegetables for home consumption. This activity is 1) excluded…
A: GDP is the value of final goods and services produced in an economy within a given period of time,…
Q: Solve the attachment
A: The aggregate income of the economy is= consumption+investment+government expenditure+export
Q: If the population of a country grows and increases both the labor force and the demand for…
A: GDP is the value of final goods and services produced in the economy within a given period of time.
Q: Assume an economy with two firms. Firm A produces wheat and firm B produces bread. In a given year,…
A: Given; Firm A Items Value added Production (4000×20) $80000 Sell to firm B (1000×20) $20000…
- Calculate the equilibrium level of output (income) for the following economy:
Consumption C = 1500+0.75Y Investment I = 500
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Consider the following economy C=1000+0.4(Y-T) 1=500 T=400 G=300 What is the investment of equilibrium?Explain the relationship between output and income for both an individual and an entire economy.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. Scenario 2020 GDP Excluded Included Athleticus, a U.S. shoe company, produces a pair of sneakers at a plant in Vietnam on March 17, 2020. Athleticus imports the pair of sneakers into the United States on May 21, 2020. The Jones family buys an antique silver platter at an auction in upstate New York on March 17, 2020. Fastlane, a Japanese automobile company, produces a sedan at a plant in Indiana on December 12, 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 19, 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…
- Use the following table to answer the question below for an economy that has no government, no international trade or any association with other countries: Consumption (billions) Level of Output (billions) $240 $260 $280 $300 $320 $340 $360 $340 $380 $356 $400 $372 If gross investment is $4 billion, the equilibrium level of GDP (output) will be: a) $340 b) $280 Oc) $260 $244 $260 $276 $292 $308 $324 d) $360A country has just one resource - labor - that it can use to produce two goods, books and clothing. At first the country has 10 million workers, and each worker can produce either 2 books or 5 units of clothing per day. Suppose the country wants to produce 8 million books. Suppose the price of a book is $10, and the price of a unit of clothing is $20. Using this information and your answer from the last question, calculate the country's GDP (measured in dollars per day). Enter your answer as a number in the space below. (For example, if your answer is $3.75 million, enter it as 3750000 in the space below.)When a U.S. consumer buys Canadian maple syrup at the grocery store, this purchase is:A) an importB) an exportC) gross domestic productD) a transfer payment. Below is economic data for Germany for 2016 (measured in billions of current euros). What was total spending? Consumption 1,649.79 Investment 636.42 Government spending 620.01 Exports 1,442.41 Imports 1,211.64 A) 2,675B) 4,348C) 2,906D) 3,137 Please ans both questions and you will get thumbs up.
- Classify each of the following items as a final good or an intermediate good, and identify whether it is a component of consumption expenditure, investment, or government expenditure on goods and services: Item 1. Packing boxes bought by Amazon.com. Item 2. Starbuck's grande mocha frappuccino bought by a student. Item 3. A new limousine for the president. Item 4. New airplanes bought by United Airlines. Item 1 is and item 2 is A. an intermediate good; a final good that is consumption expenditure B. a final good that is consumption expenditure; a final good that is consumption expenditure O C. a final good that is consumption expenditure; a final good that is investment D. an intermediate good; a final good that is investment Item 3 is and item 4 is O A. an intermediate good; an intermediate good B. a final good that is government expenditure; a final good that is investment O C. an intermediate good; a final good that is investment O D. a final good that is government expenditure; an…Suppose that imports decreases by 10 and the other components remain. Will the level of saving and consumption change as the economy adjusts to this change in imports? Explain.“The total demand for goods and services consists of consumption demand,investment demand, government demand and net exports.” In terms of thisstatement, discuss the three sets of demand factors that can lead to economicgrowth.
- Calculate consumption expenditure given that:- APC = 0.16 Income = $5000The following equations describe a small economy. Figures are in millions of dollars; interest rate (i) is in percent per annum. Assume that the price level (P) is fixed. Goods Market C = Co + cYD (Private consumption) YD = Y + TR – T (Disposable income) T = To + tY (Total taxes) I = Io – bi (Private investment) G = Go, TR = TRo (Gov. Expenditure and Transfers, respectively) Y = C + I + G (Goods mkt. equilibrium condition) Money Market L = kY- hi (Demand for real balances) Ms = Mo/P (Real money supply) L = Ms (Money mkt. equilibrium condition) Endogenous Variables: C, YD T, I, Y, L, Ms and i Exogenous Variables: Co = 300, To = 80, Io = 450, Go = 300, TRo = 100, Mo = 350, P =1 Parameters: c = 0.85, t = 0.15, b = 50, k = 0.25 and h = 62.5 Policy…Which of the following will not cause an increase in equilibrium GDP? a) an increase in government expenditure on health care b) an increase in income tax rates c) an increase in exports to the EU d) an increase in domestic consumption expenditure
