Q: Given the following: Ca = $450, Ig = $250, Xn = − $10, and G = $30, what is the economy’s…
A: Equilibrium GDP is given by the aggregate of Consumption, Investment, Government Expenditure.
Q: Explain why the HDI might be better than real GDP as a measure of economic welfare.
A:
Q: Describe briefly how GDP returns to its potential level.
A: GDP is at potential level in the long run ie at the intersection of aggregate demand, aggregate…
Q: How will you identify the factors affecting long-term level and growth of national income?
A: National income refers to the value of the production of goods and services in an economy during a…
Q: In 2019, Mr. Francis paid $10m for a house that was built in 2019 and sold that year for $8m. What…
A: The house was builid on 2019 and sold to Mr Francis for 10 Million $. Therefore the house will…
Q: Country A produces GDP according to the following equation: GDP = 5/K and has a capital stock of…
A: Introduction Country A produces its GDP according to the following equation = 5 K And the capital…
Q: Given the following: Ca = $450, Ig = $250, Xn = − $10, and G = $30, what is the economy’s GDP.
A: GDP can be calculated by the following formula; GDP = Consumption C + Investment I + Governemnt…
Q: Given the following: Ca = $500, Ig = $250, Xn = − $10, and G = $30, what is the economy’s…
A: Consumption = $500 Investment = $250 Net export = -$10 Government expenditure = $30
Q: When total spending is less than production, GDP will decrease. True False
A: Production is Real GDP. Spending is aggregate demand.
Q: In an economy, people like to eat and spend for restaurant foods. This change in behavior causes…
A: We are going to discuss the effect of change in behavior of agents in the economy on the overall GDP…
Q: If consumption is $8 billion, investments is $4 billion, government purchases are $2 billion,…
A: Government purchase denotes the certain expenditure on the economics services and the goods by body…
Q: Given the following on a closed economy. C = 40 + 0.8Yd C= consumption I = 55 – 200r I= Investment G…
A: In this given closed economy the aggregate expenditure (Ye) is equal to the sum of consumption (C),…
Q: You are given the following information about an economy. C=20+0.8(Y-T) 1=100 G=520 T=0.25Y and…
A: Equilibrium GDP is denoted to be as that level of the output whose certain level of the production…
Q: Investment is a small part of GDP so it accounts for a small share of the fluctuation of…
A: Answer - Investment = Investment is buying of goods which is used to create future wealth. 1. small…
Q: In 2019, consumer spending was $14,000, government purchases of goods and services were $3,700, and…
A: We know that, Y=C+I+G+(X-M)Now, we will do the calculation of the portion…
Q: What are shortcomings of using GDP to measure the standard of living? Group of answer choices GDP…
A: GDP measures the value of goods and services produced in an economy during a specific period of…
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: What happens in a private closed economy when aggregate expenditures exceed GDP? a. GDP will…
A: In a closed economy with no government GDP is given by, Y=C+I
Q: Which of the following increases as a result of an increase in real GDP? i. autonomous expenditure…
A: Answer is given below
Q: Suppose that nominal GDP was $8 trillion in 2040 in Bedrock. In 2050, nominal GDP was $10 trillion…
A: Nominal GDP is inferred by increasing the present year amount yield by the present market cost.
Q: Which of the following is true about real GDP? A. It is always equal to nominal GDP B. It…
A: Answer to the question is as follows:
Q: Why is it desirable for a country to have a large GDP?Give an example of something that would raise…
A: GDP is the total market amount of all the final services and goods produced within the country in a…
Q: List three real life situations that shows a flaw with using GDP as the only indicator of the…
A: GDP (Gross Domestic Product): It refers to the total market value of all produced final goods and…
Q: Consumption Investment 300 250 200 150 100 50 45⁰ 50 100 150 200 250 300, CAE Real GDP The graph…
A: Given information: We have given a simple economy without a government sector or a foreign sector In…
Q: Valeria is a closed economy, where consumption totals $3 billion, tax payments are $300 million,…
A: Private saving is the total amount of savings done by the private institutes and household sectors ,…
Q: Why do you think that GDP does not grow at a steady rate, but rather speeds up and slows down?
A: Gross domestic product (GDP) is the standard measure for creation of value being added in a country…
Q: What’s the real difference of Open-Economy and Closed-Economy on calculating GDP? Write the…
A: A closed economy does not trade with other countries, so it has no exports and imports. An open…
Q: Is a larger GDP always better than a smaller GDP? Explain your answer with an example
A: Gross Domestic Product is the value of all the domestically produced goods and services. It…
Q: Suppose that nominal GDP was $9000000.00 in 2005 in Montgomery County Maryland. In 2015, nominal GDP…
A: Given, Nominal GDP(current year) = $11500000 Nominal GDP(base year) = $9,000,000 Inflation = 2%…
Q: If you live in your own house, it does not count in GDP. If you rent your house, it counts in GDP…
A: GDP is the market value of all final goods and services produced within an economy in a given period…
Q: If real GDP grows at an annual rate of 1.19% then we can expect real GDP to double in approximately…
A: We will use the rule of 70 to calculate how many years will it take for the GDP to become its…
Q: Which of the following is a short coming of GDP? a.GDP excludes changes in inventries. b.GDP…
A: GDP measures the final value of all goods and services that are produced within the domestic…
Q: Which of the following transactions should or should not be counted in GDP? Answer Yes or No and…
A: Consumer spending, investment spending, government spending, and net exports are all components of a…
Q: Suppose a parent was earning $20,000 per year working at a local firm. The parent then decides to…
A: $20,000 was the earning of parent.Babysitter earning was $10,000
Q: If Susan decides to change the oil in her car herself instead of having Speedy Lube change the oil…
A: GDP is the market value or market value of all final goods and services produced within a country's…
Q: Which of the following is a sign of a strong economy A. An increase in GDP B. A shrinking economy…
A: Economy refers to managing available resources carefully.
Q: Your aunt, who lives in Royal Oak decides to buy a new, American made dress. In GDP accounting this…
A: GDP or ‘gross domestic product’ is the value of the ‘goods & services’ that are produced within…
Q: Why is a distinction made between the recovery and the expansion phases if GDP is rising in both…
A: The fluctuations in nations GDP overtime is shown by the business cycle models. It helps in showing…
Q: Why is it desirable for a country to have a large GDP? Give an example of something that whould…
A: It is desirable for a country to have a large GDP because GDP or gross domestic product is a popular…
Q: Could a country experience a fall in population and a rise ib real gdp at the same time
A: Real GDP is the ratio of Nominal GDP to GDP deflator.
Step by step
Solved in 2 steps
- Consider how each of the following events is likely to affect real GDP. Do you think the change in real GDP reflects a similar change in economic well-being? a. Businesses and firms throughout the economy experience falling demand, causing them to lay off workers b. Government passes new environmental laws that prohibit firms from using production methods that emit large quantities of pollution.If aggregate expenditure is greater than real GDP, we could expect which of the following toWhat are some example possible reasons for a decline in the level of potential GDP?
- Can you inform from the graph the movement of the price level in the economy since the beginning of 2021? Explain GDP Were we ever in a recession during the period? How do you know?You purchase a Tesla Model 3. What is the impact to the different components of the U.S. GDP and the overall impact to net GDP for the U.S.?If the United States introduces universal child care, what will likely happen to GDP? Explain fully why you expect the effect. Will this increase/decrease overall public welfare? Why?
- “If taxes and government spending are increased by the same amount, there will be no effect on equilibrium GDP.” True or false? Explain and support your answer using a specific hypothetical example.What will be the short-run effect of the shift in the reaction function on GDP?If U.S. government statistics counted education spending as part of the investment, which of the following would rise, which would fall, and which would remain unchanged? You might use rise, fall, and stay unchanged more than once each or you might not. Consumption Investment Gross domestic product
