a. Which of the following goods are usually intermediate goods and which are usually final goods? Also suppose that across the whole economy, depreciation (consumption of fixed capital) totals $1 trillion. Deflation. Indicate in each calculation whether you are inflating or deflating the nominal GDP data. 7 years (70/10). Assume that a national restaurant chain called BBQ builds 10 new restaurants at a cost of $1 million per restaurant. = the right answer In this question, the initial stock of capital is $1 million and there are two flows that can change the size of the stock of capital. c. When measuring GDP for a particular year, economists exclude the value of the used furniture bought and sold because. By contrast, the other choices are incorrect because they involve transactions that do not involve money, are illegal, or involve social costs for which there are no market transactions. c. Assume, once again, that the quantities produced and the prices of the three goods are as listed in the table. c. 5 percent What government agency compiles the U.S. NIPA tables? 10% 0.764 b.) Restate the saving and consumption equations inserting the new numerical values. What is the economic meaning of (1 - b)? b. Good: Apples All figures are in billions of dollars. National income (NI) $334.1 1 To measure changes in the value of production and income in the economy, Depreciation is all of the following, except, By summing the dollar value of all market transactions in the economy, we would, obtain a sum substantially larger than the GDP, The base year of the price index given in the accompanying table is, GDP in an economy is $11,050 billion. Pham can work as many or as few hours as she wants at the college bookstore for $12 per hour. Rishi Sunak is in Northern Ireland today to whip up support for his new post-Brexit deal after agreeing the Windsor Framework with the EU yesterday. Households in China save 40 percent of their annual incomes each year, whereas U.S. households save less than 5 percent. Gross investment 25 Interest received on an AT&T corporate bond: The transition from the current energy architecture to a new model is evident and inevitable. One year nominal GDP was $286 billion and the price index was 88. Which set of years most clearly demonstrates an expansionary phase of the business cycle? Which of the following is a primary use for national income accounts? PI= 357-18-20-19-21+12= 291 c. $334.1. The service a homeowner performs when she mows her yard is not included in GDP because. And she has a potential job at a daycare center that will pay her $11.50 per hour for as many hours as she can work. c. PI= 291 billion a. The market demand and the individual demands of Tex, Dex, and Rex are shown in the following table. 8 4 Assuming that the price of gold increased by 100 percent over the same period, by what percentage did Glitter Gulch's real output change? 60 percent What was the APC before the increase in disposable income? c. If the growth rate in year 3 had been a positive 2 percent rather than a negative 2 percent, what would have been Econoland's average growth rate over the five years? All values are in dollars. One potential job, at a caf, will pay her $15 per hour for up to 6 hours per week. Use the figure to fill in the quantity supplied given supply curve S1 for each price in the following table (second column, gray-shaded cells). GDP year 2 (2100-1600)/1600*100. We observed . Income and taxes approach: National income = $223 (compensation of employees) + $14 (rents) + $13 (interest) + $33 (proprietors' income) + $56 (corporate profits) + $18 (taxes on production and imports) = $357 billion. Price increases and quantity is indeterminate GDP using the expenditures approach = $ 388 billion245+33+27+72+11= $388 Receipt No. Bottles of shampoo $3.00 1 $3.00 2 It does not involve the production of any goods and services and hence does not get counted in GDP. Firm A Wages paid to employees Taxes paid to government Input purchased from Firm C Revenue received Sold to Public (newly produced) Sold to Government Sold to Firm C Sold from inventory to Public Unsold production After-tax profit Firm B Wages paid to employees Taxes paid to government Input purchased . d.) Price is indeterminate and quantity increases 62.5 Given two of these values below, calculate the third. If you can't describe, then say so-this often happens when we read about a survey. Refer to the accompanying data. For the soap-making opportunity, she anticipates annual revenue of $465,000. National In. d.DI= 265 billion b. -2 What is RRR ? billion. b. \text {Cash} \\ So, disposable income is personal income less personal taxes. Briefly explain why? a. c. Level of consumption = $ What is the official unemployment rate?10% Thus, real GDP = $70,000 (nominal output 1984)/(62.5/100) (the price index in 1984 scaled to decimal form) = $70,000/0.625 = $112,000. d. Demand increases and supply increases. b. In year 2, the total expenditure for the same market basket of goods was $5,500 billion. \text {Expenses} N$35,00036,40012,60049,000$(14,000)Dept. Which point, A or B, best represents the combination of present and future goods in the United States? NDP = $388 - $27 = $361 billion. The coming future promises innovative and increasingly rigorous projects and challenges for everyone involved in this value chain. Nominal GDP = Real GDP x (price index/100), Find the Price Index: GDP using the income approach = 388 billion (121-110)/110*100 As a result, investment. Direct materials would remain unchanged at$50 per rim, as would direct labor at $56 per rim. b. Growth Rate How big is G? this amount should be included in calculating that year's GDP. Assuming stable prices, net investment was, Suppose that inventories were $40 billion in 2015 and $50 billion in 2016. In this question, gross investment is proceeding at the rate of $150,000 per year while depreciation is proceeding at the rate of $50,000 per year. the nominal value of all goods and services produced in the domestic economy, corrected for inflation or deflation. b. Also assume that Ig = $30 billion, C = $60 billion, and Xn = - $10 billion. All figures are in billions of dollars. f. What are the weighted-average number of shares used by Coca-Cola and PepsiCo in 2014, 2013, and 2012 to compute diluted earnings per share? Method 1 = billion. Category Value Personal consumption expenditures $70 Purchases of stocks and bonds 30 Net exports -10 Government purchases 20 Sales of secondhand items 8 Solutions Solutions Sexton Brue/McConnell For the Internet opportunity, she anticipates costs for land, labor, and capital of $3,250,000 per year and revenues of $3,275,000 per year. Which of the following activities is excluded from GDP, causing GDP to understate a nation's well-being? A dining room table, a. (NDP: GDP- Consumption of fixed capital)=388-27= 361 All figures are in billions. b. All figures are in billions of dollars. What is iii ? Personal consumption expenditures 219.1 The value of transactions in the underground economy is estimated to be about what percentage of GDP in the United States? Compensation of employees: $223 b. The questions that follow ask you to determine the major national income measures by both the expenditures and the income approaches. c.) 360=(40+0.8*400) Rents: $14 Using the following table: 0.8 The following table shows the data for a hypothetical economy in a specific year. \ ( \$ \) billion. b. a. The table lists real GDP, consumption (C), investment (I), government spending (G), net exports (X - M), and aggregate expenditures (AE). Proprietors' income 33 d.) 0.9=(360/400) Market research shows that for the deluxe rim to provide a reasonable profit, Elton will have to meet a target manufacturing cost of $656 per rim. If the yield on 333-year Treasury bonds equals the 111-year yield plus 2%2 \%2%, what inflation rate is expected after Year 111? Cases of target reactions and alternative gap-filling reactions identified using the E. coli metabolites subset. if intermediate goods were counted, then multiple counting would occur. Instructions For the Internet opportunity, she anticipates costs for land, labor, and capital of $3,250,000 per year and revenues of $3,275,000 per year. Instructions: Enter your answer as a whole number. Personal consumption expenditures $50 If work hours increase to 210 in year 2 and productivity rises to $10 per hour, what is New Zombie's rate of economic growth? b. O$56,00022,4004,20026,600$29,400Dept. Suppose that businesses buy a total of $100 billion of the four resources (labor, land, capital, and entrepreneurial ability) from households. Assuming stable prices, net investment was . people are also informed about entertainment which may include sporting events, music or recreation. The other is by adding up all of the income received by sellers as they sell final goods and services. APC= Consumption/ Disposable income150/200=0.75 85 million None of these are correct: This economy's net domestic product (NDP) will be equal to $15.0 trillion (which is not one of the three specific numerical choices that are given by the question as possible answers). What amount would these two transactions add to personal consumption expenditures and thus to GDP during the year? c. By what percentage would GDP be boosted if the value of the services of stay-at-home spouses were included in GDP? In the treatment of U.S. exports and imports, national income accountants. To find the surplus or shortage take 1st Column of Bushel Demanded - 2nd Column of Bushel demand = Surplus or Shortage Thus, GDP equals $85 billion for this country (= $50 billion + $25 billion + $20 billion + (- $10 billion)). Next suppose that the growth of real GDP per capita falls to zero percent in the leader country and rises to 7 percent in the follower country. ((3+1+2+4+5)/5)= 3. f. Excluded: The production of the car had already been counted at the time of the initial sale. All figures are in billions of dollars. What was this economy's GDP in year 1? d. Included: Payment for a final service. Assume that a grower of flower bulbs sells its annual output of bulbs to an Internet retailer for $70,000. $4 Pub. She has another job offer at a garage that will pay her $13 an hour for up to 5 hours per week. Providing logical evidence 15. This information is extraneous to the question. a. $316 h. An increase in leisure resulting from a 2-hour decrease in the length of the workweek, with no reduction in pay: The following table shows the data for a hypothetical economy in a specific year. All figures are in billions. c. Which buyer's quantity demanded increases the most when the price decreases from $7 to $6? Purchases of stocks and bonds:30 Next Visit question mapQuestion 23 of 25 Total23 of 25 Prev, Suppose that in 1984 the total output in a single-good economy was 7,000 buckets of chicken. The following table shows data on a hypothetical country's real GDP from 1980 through 1988: Real GDP Year (Billions of Dollars) 1980 372 1981 376 1982 380 1983 388 1984 408 1985 404 1986 396 1987 392 1988 400 The green line on the following graph shows the economy's long-term growth trend. Economy B: depreciation exceeds gross investment Net foreign factor income 2.2 We have an Answer from Expert. supply will shift to the right. Robert paying Ted for a haircut in Chicago. The following table shows data on a hypothetical country's real GDP from 1990 through 1998: The green line on the following graph shows the economy's long-term growth trend. Suppose that the annual rates of growth of real GDP in Econoland over a five-year period were as follows: Suppose that this year's nominal GDP is $16 trillion. Using the above data, determine GDP by both the expenditures approach and the income approach. the child-care services provided by stay-at-home parents. b. MPS = \end{array} \\ What is the size of the underground economy as a percentage of GDP? b. Compare 12. a.) In these data, U.S. exports are. Ryder in March 2013. With that version of the equation in hand, we can plug in our values for GDP, consumption, gross investment, and net exports. a. On December 31, 20X1, Figlmiller Corporation has one note receivable outstanding, a 90-day, 5%,$13,000.00 note dated December 1, and one note payable outstanding, a 120-day, 4%, $8,000.00 note dated November 16. Thus, real GDP = $352,000 (nominal output 2005)/(100/100) (the price index in 2005 scaled to decimal form) = $352,000/1 = $352,000. Yes, she should quit her job to become an entrepreneur. . Refer to the figure below. Real GDP = Nominal GDP/Price Index, Find the Nominal GDP: Demand Graph : ( 1st Column of Bushels Demand, Price per Bushel highest to low)Supply Graph ( 2nd column, price per bushel, low to high) it was counted in GDP in some previous year. Government purchases 59.4 Quarts of Ice Cream Taxes on production and imports: $18 the purchase of 100 shares of AT&T by a retired business executive. Understanding reality 14. 0.10 She then develops two possible entrepreneurial business opportunities. The table contains data for a hypothetical single-product economy. e. Demand increases and supply is constant. The value of corporate stocks and bonds traded in a given year is. Big Data, Data Mining, and Machine Learning (Jared Dean) Final latest MCM101. (b) Consumption of fixed capital - 11.8 a. The central theme of 2022 was the U.S. government's deploying of its sanctions, AML . Proprietors' income: $33 Answered by MasterLyrebirdMaster734. All figures are in billions of dollars. Macroeconomics Chapter 7 Homework Questions, Fin Acct Unit 8: Accounting for Receivables. DI- 291-26= 265, Using the following national income accounting data, compute (a) GDP, (b) NDP, and (c) NI. Correspondingly, the number of migrant children aged 0-5 years was 11.47 million. How will an increase in state subsidies to public colleges affect the market for public and private colleges? investment in 2012 and as negative investment in 2013. a.What is the equilibrium price in this market?$4.00 per bushelAt what price is there neither a shortage nor a surplus?$4.00 per bushel Prices and Output in a Two-Item Economy Instructions: Enter your answers as a whole number. Price Index: 101.2, 14787 = Real GDP What amount would these two transactions add to personal consumption expenditures and thus to GDP during the year? are useful to assess the health of an economy and formulate policies to maintain and improve that health. Nominal GDP: 14964.4 PI = $ 291 billion All figures are in billions of dollars. The annual output and prices of a 3-good economy are shown in the table below. ( 6 pts) Suppose that the linear equation for consumption in a hypothetical economy is C = 900 + 0.3 Y. ), 28 years Also suppose that in 1984 each bucket of chicken was priced at $10. Established in 2010, this marketplace lending platform has attracted 48 million users to register. i. What was the APC after the increase? Use the table to answer the questions that follow. You are given the following three bundles: (12, 4), (4, 12), and (8, 8). a. What was the average of these growth rates in Econoland over these five years? Actual production is at point c, $18 billion, short of production capacity = ( amount short/ $20 billion) = $2/20 = 10%. The results you obtain with the different methods should be the same. An entrepreneur China save 40 percent of their annual incomes each year, economists exclude the value of the goods. 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