Calculating GDP with the exenditure approach and income approach... O..gives the same result ..can give different results, because GDP calculated with the expenditure approach is higher if we have exports-imports<0 (because a trade deficit reduce national income but not consumption) ..can give different results, because GDP calculated with the expenditure approach is higher if we have investment (which is not counted as income) .can give different results; GDP with value added approach and income approach, however, coincide

Calculating GDP with the exenditure approach and income approach... O..gives the same result ..can give different results, because GDP calculated with the expenditure approach is higher if we have exports-imports<0 (because a trade deficit reduce national income but not consumption) ..can give different results, because GDP calculated with the expenditure approach is higher if we have investment (which is not counted as income) .can give different results; GDP with value added approach and income approach, however, coincide

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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FOOD Q ويه PP Que CLOTH 5. The above figure shows two isovalue lines V, and Va at the same relative price Po/Py. A and B are two production patterns. The quantities of cloth and food produced in each case are indicated by Qua: Qes and Qra: Qn respectively. Based on the above, which of the following is correct? A) When relative price - Po/Pr, GDP produced at A (VA) equals GDP produced at B (Vs) became they both lie on the same PPF. B) When relative price Po/P, GDP produced at A (VA) is greater than GDP produced at B (V). 1 C) If the nation produces at A when relative price PP, it is maximizing its GDP D) GDP is maximized at A if the relative price PPy decreases.
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