(Table) According to the table, when using the expenditure approach, GDP isCategoryProprietors' incomeCapital consumption allowanceFederal government purchases of goods and servicesCompensation of employeesPersonal consumption expendituresBillions$300440200S009509060Corporate proftsExportsGross private domestic investmentRental incomeState and local government purchases of goods and servicesNet interestFederal government deficitImports5003015010025090O $1,770 billion.O $2,020 billion.O $1,320 billion.O $1,330 billion.The government decides to give tax-exempt status to a new organization whose mission is to award college scholarshipsto members of the armed forces. In doing so, the government is acting in its role to promote economic growth byO ensuring a stable legal system.O enhancing physical and human capital.O ensuring a stable and secure financial system.promoting free and competitive markets.

The expenditure approach is a method for calculating a nation's gross domestic product (GDP) by…

Capital consumption allowance 440 Federal government purchases of goods and services Compensation of employees Personal consumption expenditures Corporate profits Exports Gross private domestic investment Rentnl income State and local government purchases of goods and services Net interest Federal government deficit Imports O $1,770 billion. 200 800 950 90 500 9 30 150 100 250 90 $2,020 billion. $1,320 billion. O $1,330 billion.

Capital consumption allowance 440 Federal government purchases of goods and services Compensation of employees Personal consumption expenditures Corporate profits Exports Gross private domestic investment Rentnl income State and local government purchases of goods and services Net interest Federal government deficit Imports O $1,770 billion. 200 800 950 90 500 9 30 150 100 250 90 $2,020 billion. $1,320 billion. O $1,330 billion.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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An expansionary fiscal policy that takes the form of an increase in government purchases carries the possibility that private investment and, as a result, the future growth rate of O a. Is crowded out, potential output is reduced. O b. Rises to an unsustainable level; real GDP is reduced. O c. Increases, net exports increases. O d. Is crowded out; corporate tax revenue is reduced. e Increases, aggregate demand increases.
c) The table below contains information about the national income data of a country. RM billion 40 Items Capital consumption Government purchases Subsidies Net exports Indirect taxes Gross private domestic investment Net factor income from abroad Personal consumption expenditures 1,450 70 - 280 160 2,200 - 340 3,100 Using the above table, calculate the Gross Domestic Product at market price (GDPMP), Gross National Product at market price (GNPMP), Gross National Product at factor cost (GNPFC), and national income.
9. Problems and Applications Q9 Investment can be increased both by reducing taxes on private saving and by reducing the government budget deficit. True or False: It is possible to implement both of these policies at the same time because reducing taxes on private spending has the effect of decreasing the government budget deficit. O True False What would you need to know in order to judge which of these two policies would be more effective way to raise investment? Check all that apply. ✓ The elasticity of private saving with respect to the after-tax real interest rate The responsiveness of private saving to increases in investment ✔The response of private saving to changes in the government budget deficit
2. The following information has been extracted from National income accounts data of a certain country; Amount (Billion) Particulars Personal consumption expenditure Transfer Payment Rent on land Capital Consumption Allowance Social Security Contribution Interest on Capital Proprietor's income (Profits) Net exports Dividends 245 12 14 27 20 13 31 3 16 221 Compensation to employees (Wages) Indirect taxes 18 Undistributed corporate profits 21 Personal taxes 26 Corporate income taxes Corporate profits Government purchases of goods and services Net private domestic investments Personal savings 19 56 72 33 16 Required: (i) Net National product (ii) National income (iii) Personal ircome (iv) Disposable Income (v) Per capital Income
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Which group is most likely to demand funds from the financial (loanable funds) market? O financial institutions who lend funds to people. O the government when they run a budget surplus. O firms who want to borrow to pay for new capital. O people who have extra income they want to save. « Previous Next ASUS 16 5 6 7 R
4. Foreign payments to capital, labor, and land owned by domestic entities minus payments to factorservice imports equals: a. the difference between gross national income and gross domestic product. b. the difference between imports and exports. c. the difference between unilateral transfers and domestic income.d. income not subject to taxation such as capital gains, illegal earnings, or casual earnings
Table 7-3 (in $ billion) consumption $1,100.00 %3D inventory investment = $460.00 purchased of new capital goods = $560.00 government purchases = $300.00 %3D exports = $20.00 %3D imports $33.00 %D purchased of new residential housing = $58.00 %3D Refer to Table 7-3, GDP equals O $2,165.00 O $2,432.00 O $2,465.00 O $2,425.00
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2. (1) Valeria is a closed economy, where consumption totals $3 billion, tax payments are $300 million, governmen spending is $1 billion, and GDP is $5 billion. Private saving amounts to A B C D $1.7 billion and Valeria's government runs a budget deficit. $1.7 billion and Valeria's government runs a budget surplus. $1 billion and Valeria's government runs a budget deficit. $1 billion and Valeria's government runs a budget surplus