(a) To explain: Whether during the business cycle, the consumer non-durable or durable goods tend to change.

Question

what aspects of GDP are mostly affected when the economy slows down? and why?

Answer 1

Question

Chapter 11, Problem 7P

To determine

(a)

To explain:

Whether during the business cycle, the consumer non-durable or durable goods tend to change.

To determine

(b)

To explain:

The way consumer durables are similar to the investments.

To determine

(c)

To explain:

Whether there can be a negative value in a year for a fixed investment or an inventory.

To determine

(d)

To explain:

The reason behind all of the government spending is not considered as part of the Gross Domestic Product.

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what aspects of GDP are mostly affected when the economy slows down? and why?

a. The paradox of thrift is based on a circular flow of the economy in which current spending drives future spending. Explain the paradox of thrift. b. Why do you think households’ purchase of new housing is included in the investment components of GDP rather than the consumption component? c. What is the difference between GDP and GNP? Which one is the better measure of income? Why?

3. What is meant by potential GDP?

Answer 2

Question

Chapter 11, Problem 7P

To determine

(a)

To explain:

Whether during the business cycle, the consumer non-durable or durable goods tend to change.

To determine

(b)

To explain:

The way consumer durables are similar to the investments.

To determine

(c)

To explain:

Whether there can be a negative value in a year for a fixed investment or an inventory.

To determine

(d)

To explain:

The reason behind all of the government spending is not considered as part of the Gross Domestic Product.

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Answer 3

Question

Chapter 11, Problem 7P

To determine

(a)

To explain:

Whether during the business cycle, the consumer non-durable or durable goods tend to change.

To determine

(b)

To explain:

The way consumer durables are similar to the investments.

To determine

(c)

To explain:

Whether there can be a negative value in a year for a fixed investment or an inventory.

To determine

(d)

To explain:

The reason behind all of the government spending is not considered as part of the Gross Domestic Product.

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Answer 4

Question

Chapter 11, Problem 7P

To determine

(a)

To explain:

Whether during the business cycle, the consumer non-durable or durable goods tend to change.

To determine

(b)

To explain:

The way consumer durables are similar to the investments.

To determine

(c)

To explain:

Whether there can be a negative value in a year for a fixed investment or an inventory.

To determine

(d)

To explain:

The reason behind all of the government spending is not considered as part of the Gross Domestic Product.

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Answer 5

Chapter 11, Problem 7P

To determine

(a)

To explain:

Whether during the business cycle, the consumer non-durable or durable goods tend to change.

To determine

(b)

To explain:

The way consumer durables are similar to the investments.

To determine

(c)

To explain:

Whether there can be a negative value in a year for a fixed investment or an inventory.

To determine

(d)

To explain:

The reason behind all of the government spending is not considered as part of the Gross Domestic Product.

Answer 6

Chapter 11, Problem 7P

To determine

(a)

To explain:

Whether during the business cycle, the consumer non-durable or durable goods tend to change.

Answer 7

Chapter 11, Problem 7P

To determine

(a)

To explain:

Whether during the business cycle, the consumer non-durable or durable goods tend to change.

Answer 8

To determine

(b)

To explain:

The way consumer durables are similar to the investments.

Answer 9

To determine

(b)

To explain:

The way consumer durables are similar to the investments.

Answer 10

To determine

(c)

To explain:

Whether there can be a negative value in a year for a fixed investment or an inventory.

Answer 11

To determine

(c)

To explain:

Whether there can be a negative value in a year for a fixed investment or an inventory.

Answer 12

To determine

(d)

To explain:

The reason behind all of the government spending is not considered as part of the Gross Domestic Product.

Answer 13

To determine

(d)

To explain:

The reason behind all of the government spending is not considered as part of the Gross Domestic Product.

Answer 14

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Answer 15

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Answer 25

Ch. 11 - Prob. 1P Ch. 11 - Which of the following are included in GDP...Ch. 11 - Prob. 3P Ch. 11 - Prob. 4P Ch. 11 - Prob. 5P Ch. 11 - Prob. 6P Ch. 11 - Prob. 7P Ch. 11 - Prob. 8P Ch. 11 - Prob. 9P Ch. 11 - Nominal GDP in Nowhereland in 2018 and 2019 is as...

(a) To explain: Whether during the business cycle, the consumer non-durable or durable goods tend to change.

Solution Summary: The author explains the difference between durable and non-durable goods over the course of a business cycle.

(a)

To explain:

Whether during the business cycle, the consumer non-durable or durable goods tend to change.

(b)

To explain:

The way consumer durables are similar to the investments.

(c)

To explain:

Whether there can be a negative value in a year for a fixed investment or an inventory.

(d)

To explain:

The reason behind all of the government spending is not considered as part of the Gross Domestic Product.

Chapter 11 Solutions

(a) To explain: Whether during the business cycle, the consumer non-durable or durable goods tend to change.

Solution Summary: The author explains the difference between durable and non-durable goods over the course of a business cycle.

(a) To explain: Whether during the business cycle, the consumer non-durable or durable goods tend to change.

(b) To explain: The way consumer durables are similar to the investments.

(c) To explain: Whether there can be a negative value in a year for a fixed investment or an inventory.

(d) To explain: The reason behind all of the government spending is not considered as part of the Gross Domestic Product.

Chapter 11 Solutions

(a)

To explain:

Whether during the business cycle, the consumer non-durable or durable goods tend to change.

(b)

To explain:

The way consumer durables are similar to the investments.

(c)

To explain:

Whether there can be a negative value in a year for a fixed investment or an inventory.

(d)

To explain:

The reason behind all of the government spending is not considered as part of the Gross Domestic Product.