Macroeconomics
13th Edition
ISBN: 9781337617390
Author: Roger A. Arnold
Publisher: Cengage Learning
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Question
Chapter 7, Problem 12QP
(a)
To determine
Define contraction.
(b)
To determine
Define business cycle
(c)
To determine
Define trough
(d)
To determine
Define disposable income
(e)
To determine
Define net domestic product (NDP).
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Students have asked these similar questions
Which of these will be a part of the gross domestic product?
a.
Income from this year’s final output
b.
Income of citizens from abroad
c.
Income from selling second hand items
d.
Income from illegal activities
Calculate the following using information from the table below:
i.
GDP at Market Price
ii.
GNI at market price
iii.
Net National Income
iv.
National Disposable Income
Purchase of mask by households
Clothing
Purchase of food to be used by households
Investment in housing
Change in inventory
Building of new public hospital
Import
Export
Tax
Subsidies
Salaries to workers abroad
Compensation from workers abroad
Depreciation
Net Current transfer
12,000
45,500
20,000
100,000
10,000
2,000,000
5,000
75,000
4,000
1,000
7,500
3,500
300
1,500
All of these are measures of national income, except _____.
a.
Net Labor force
b.
GDP
c.
Net National Product
d.
GNP
Chapter 7 Solutions
Macroeconomics
Ch. 7.1 - Prob. 1STCh. 7.1 - Prob. 2STCh. 7.2 - Prob. 1STCh. 7.2 - Prob. 2STCh. 7.2 - Prob. 3STCh. 7.4 - Prob. 1STCh. 7.4 - Prob. 2STCh. 7.4 - Prob. 3STCh. 7 - Prob. 1QPCh. 7 - Prob. 2QP
Ch. 7 - Prob. 3QPCh. 7 - Prob. 4QPCh. 7 - Prob. 5QPCh. 7 - Prob. 6QPCh. 7 - Prob. 7QPCh. 7 - Prob. 8QPCh. 7 - Prob. 9QPCh. 7 - Prob. 10QPCh. 7 - Prob. 11QPCh. 7 - Prob. 12QPCh. 7 - Prob. 13QPCh. 7 - Prob. 14QPCh. 7 - Prob. 1WNGCh. 7 - Prob. 2WNGCh. 7 - Prob. 3WNGCh. 7 - Prob. 4WNGCh. 7 - Prob. 5WNGCh. 7 - Prob. 6WNGCh. 7 - Prob. 7WNGCh. 7 - Prob. 8WNGCh. 7 - Prob. 9WNGCh. 7 - Prob. 10WNGCh. 7 - Prob. 11WNG
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Similar questions
- Nominal GDP in Nowhereland in 2018 and 2019 is as follows: Can you say that the production of goods and services in Nowhereland has increased between 2018 and 2019? Why or why not?arrow_forwardTo arrive at the National income using the value added method, what has to be added to the net output? a. investments from the private sector b. Imports c. government spending and taxes d. net foreign factor income from abroadarrow_forwardWhat is the term for the total value of goods and services produced within a country's borders in a given year? A. Gross national product (GNP) B. Gross domestic product (GDP) C. Net exports D. Aggregate demandarrow_forward
- Which of these is not a characteristic of the gross domestic product? a. Includes intermediate goods b. Calculated every accounting year c. Value of all final goods and services d. Expressed in terms of moneyarrow_forwardWhat variables determine gross domestic product? What are the two approaches used to measure gross domestic product?arrow_forwarda) Calculate GDP Deflator of 2009. b) Calculate the Growth rate of real GDP of 2009. c) What can you conclude from your answer to part a. d) What can you conclude from your answer to part b. Please answer all and answer must be correct.arrow_forward
- Macro economics Task 2 Explain the concepts Gross national product, Net national product, National income and Disposable income and the connection between these. Which of these terms do you think is best suited to say something about the income development in a country?arrow_forwardExplain the difficulties in the measurement of the national income?arrow_forwardThe GDP deflator measures A .the changes in aggregate prices of all final goods and services produced within a country’s borders within a certain time period and incorporates the relevant parts of the CPI and PPI statistics. B. the inflation rate based on consumer cost of living over time, turning dollar figures into meaningful measures of purchasing power. C. the inflation rate based on the producer price index, turning dollar figures into meaningful measures of purchasing power. D. the inflation rate of both exports and imports over time, turning dollar figures into meaningful measures of purchasing power.arrow_forward
- b. Use the data below to calculate the following: I. Gross National Product at Market Price II. Gross National Disposable IncomeIII. Net National Income at basic price IV. Net National Income at basic priceV. Personal Income VI. Disposable Income Compensation of employees 2000 Interest 500 Rent 700 profits 800 Employer’s contribution to social security 20 Net indirect tax 250 Consumption of fixed capital 100 Net Exports 70 Net factor income to abroad 150 Mixed income of self employed 1500 Net current transfers from the rest of the world 250 Current transfers from the government 100 Subsidies 25arrow_forwardAnswer the following questions. 1. What is the difference between Gross Domestic Product and Gross National Income? 2. Evaluate the statement: "Inflation reduces the purchasing power of the peso."arrow_forward
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