**4. What are the two different ways of looking at GDP?**The ________ (or output) approach adds up all the expenditures used to purchase output from the economy. The ________ approach looks at the value of the income that is derived from producing the economy’s output. Either approach can be used in calculating GDP and will produce (the same, different) answer. This is the expenditure-income identity (E ___= I ___). **Explanation:**This text describes two approaches to calculating Gross Domestic Product (GDP): 1. **Expenditure (or output) Approach**: This method involves summing up all expenditures or spending on goods and services used to purchase output from the economy. 2. **Income Approach**: This approach calculates GDP by evaluating the total income generated by the production of goods and services in the economy.Both methods should theoretically yield the same GDP value, which is emphasized here as the expenditure-income identity $ (E = I) $.

Answered: 4. What are the two different ways of…

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

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When using the income approach to measure GDP, what calculation must be done to convert GDP at factor costs to GDP at market prices? The calculation is ______ to factor costs. A. add a statistical discrepancy B. add indirect taxes less subsidies C. subtract indirect taxes less subsidies D. subtract indirect taxes add subsidies
When a consumer withdraws cash from a drawer in his house and deposits it in a savings account, the composition of the money supply immediately changes, and the size of the money supply may eventually alter as well. Demonstrate and explain how this activity may affect the money supply in an economy.
Subject: eco
23. Which of the following is used to calculate GDP through the expenditure approach? a.C + I + G + (X - M) b.C + I + G + (M -X ) c.C + I + G + X d.C + I + G + SClear my choice
The table below shows the price of inputs and the price of outputs at each step in the production process of making a shirt. Assume that each of these steps takes place within the country. Inputs Value of output Cotton Farmer $0 $1.55 Fabric Maker $1.55 Sewing and Printing $3.65 $3.65 $18.20 Instructions: Round your answers to two decimal places. a. Using the standard expenditure method, the total contribution of this shirt to GDP is: b. If we use a value-added method (i.e., summing the value added by producers at each step of the production process, equal to the value of output minus the price of inputs), the contribution of this shirt to GDP is: c. If we mistakenly added the price of both intermediate inputs and final outputs without adjusting for value added, we would find that this shirt contributes: to GDP This overestimates the true contribution by: $
Please answer a to e sir I know sir. Bartley policy but I have no more question sir. Please answer all I will rate sir..
Question 2: Fill in the blanks. The three different approaches to measuring the GDP are the expenditure approach, the approach, and the approach. The expenditure approach aggregates the spending by the four sectors of the economy: (a) the household sector, (b) the sector, (c) the sector, and (d) the foreign sector, to yield the total GDP. The largest spending in Canada’s aggregate GDP comes from the sector. When using the income approach, the first step is to calculate the total national income by adding employee compensation, proprietor’s income, , net interest, and rental income. There are six categories of economic exchanges that are omitted from GDP calculations. One such category is government transfer payments (like unemployment insurance payment), because it represents transfers of income without new production. Another category is , because because they are unpaid and not…
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2. In a couple sentences, explain the definition of GDP. What kinds of spending are included, and which are not?
1. What is the distinction between Nominal GDP and Real GDP? Which is more important in terms of satisfying humans wants? Why? 2. Use list to compute GDP from the Expenditures approach. Personal Consumption expenditures $600 Transfer payments $15 Consumption of fixed capital $20 Interest $11 Exports $15 Government purchases $85 Compensation of employees $225 Imports $18 Net private domestic investment $65
Definition of GDP and explanation of why this is equal to national income [ an explanation of how expenditure approach and income approach to GDP are related ]

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