The expenditure and resource cost-income approaches to calculating GDP arrive at the same final number, but they calculate that number in different ways. To illustrate, consider the possible effects of the following transactions on GDP: 1. Tim pays Better Buy $800 to for a nevw high-definition television (HDTV) and its installation. He's attracted by Better Buy's guarantee that he'll be happy with the new HDTV, or he'll get his money back. 2. Better Buy pays Firedog $650 to install the HDTV. 3. Firedog buys hardviare vorth $50 from The Home Station. Compute contributions to GDP, using the expenditure approach. Assume that The Home Station receives the hardware at no charge and that other costs are zero. Hint: Add the amount of money spent by buyers of final goods and services. Which of the following viould be included in the expenditure method of calculating GDP? Check all that apply. | Tim spends $80o. Better Buy spends $650. Firedog spends $50. The total contribution to GDP, measured by the expenditure method, is, Now use the following table to compute contributions to GDP, employing the resource cost-income approach. In particular, indicate the costs of intermediate goods and the value added at each stage of production. Stage of Production Sale Value Cost of Intermediate Goods Resource Cost-Income The Home Station $50 Firedog $650 Better Buy $800 The contribution to GDP that you found using the expenditure approach corresponds to the sum of the at each stage of production.
The expenditure and resource cost-income approaches to calculating GDP arrive at the same final number, but they calculate that number in different ways. To illustrate, consider the possible effects of the following transactions on GDP: 1. Tim pays Better Buy $800 to for a nevw high-definition television (HDTV) and its installation. He's attracted by Better Buy's guarantee that he'll be happy with the new HDTV, or he'll get his money back. 2. Better Buy pays Firedog $650 to install the HDTV. 3. Firedog buys hardviare vorth $50 from The Home Station. Compute contributions to GDP, using the expenditure approach. Assume that The Home Station receives the hardware at no charge and that other costs are zero. Hint: Add the amount of money spent by buyers of final goods and services. Which of the following viould be included in the expenditure method of calculating GDP? Check all that apply. | Tim spends $80o. Better Buy spends $650. Firedog spends $50. The total contribution to GDP, measured by the expenditure method, is, Now use the following table to compute contributions to GDP, employing the resource cost-income approach. In particular, indicate the costs of intermediate goods and the value added at each stage of production. Stage of Production Sale Value Cost of Intermediate Goods Resource Cost-Income The Home Station $50 Firedog $650 Better Buy $800 The contribution to GDP that you found using the expenditure approach corresponds to the sum of the at each stage of production.
Chapter1: Making Economics Decisions
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i need help with this macro econmics question 2
![### 2. Comparing the Expenditure and Resource Cost-Income Approaches for Calculating GDP
The expenditure and resource cost-income approaches to calculating GDP arrive at the same final number, but they calculate that number in different ways. To illustrate, consider the possible effects of the following transactions on GDP:
1. Tim pays Better Buy $800 for a new high-definition television (HDTV) and its installation. He's attracted by Better Buy’s guarantee that he'll be happy with the new HDTV, or he'll get his money back.
2. Better Buy pays Firedog $650 to install the HDTV.
3. Firedog buys hardware worth $50 from The Home Station.
---
Compute contributions to GDP using the expenditure approach. Assume that The Home Station receives the hardware at no charge and that other costs are zero.
**Hint:** Add the amount of money spent by buyers of final goods and services.
**Which of the following would be included in the expenditure method of calculating GDP?** *Check all that apply.*
- [ ] Tim spends $800.
- [ ] Better Buy spends $650.
- [ ] Firedog spends $50.
The total contribution to GDP, measured by the expenditure method, is _______.
---
Now use the following table to compute contributions to GDP, employing the resource cost-income approach. In particular, indicate the costs of intermediate goods and the value added at each stage of production.
| Stage of Production | Sale Value | Cost of Intermediate Goods | Resource Cost-Income |
|---------------------|------------|----------------------------|----------------------|
| The Home Station | $50 | | |
| Firedog | $650 | | |
| Better Buy | $800 | | |
The contribution to GDP that you found using the expenditure approach corresponds to the sum of the ___________________ at each stage of production.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ffc14b456-3df6-4f79-86aa-6645f78dbef5%2Fc73df58f-865c-420b-a479-1e2a60b8c3a0%2Ffxsj8ej.png&w=3840&q=75)
Transcribed Image Text:### 2. Comparing the Expenditure and Resource Cost-Income Approaches for Calculating GDP
The expenditure and resource cost-income approaches to calculating GDP arrive at the same final number, but they calculate that number in different ways. To illustrate, consider the possible effects of the following transactions on GDP:
1. Tim pays Better Buy $800 for a new high-definition television (HDTV) and its installation. He's attracted by Better Buy’s guarantee that he'll be happy with the new HDTV, or he'll get his money back.
2. Better Buy pays Firedog $650 to install the HDTV.
3. Firedog buys hardware worth $50 from The Home Station.
---
Compute contributions to GDP using the expenditure approach. Assume that The Home Station receives the hardware at no charge and that other costs are zero.
**Hint:** Add the amount of money spent by buyers of final goods and services.
**Which of the following would be included in the expenditure method of calculating GDP?** *Check all that apply.*
- [ ] Tim spends $800.
- [ ] Better Buy spends $650.
- [ ] Firedog spends $50.
The total contribution to GDP, measured by the expenditure method, is _______.
---
Now use the following table to compute contributions to GDP, employing the resource cost-income approach. In particular, indicate the costs of intermediate goods and the value added at each stage of production.
| Stage of Production | Sale Value | Cost of Intermediate Goods | Resource Cost-Income |
|---------------------|------------|----------------------------|----------------------|
| The Home Station | $50 | | |
| Firedog | $650 | | |
| Better Buy | $800 | | |
The contribution to GDP that you found using the expenditure approach corresponds to the sum of the ___________________ at each stage of production.
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