Ceteris paribus, which of the scenarios below will unambiguously lead to an increase in real GDP?O a. The production of final goods and services decreases, but prices increase.O b. The prices of final goods and services decrease.O c. The prices of final goods and services increase.O d. The production of final goods and services increases.ge

GDP: It is the total of all values added to the economy.

Answered: Ceteris paribus, which of the scenarios…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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When people living in America spend $10,000 to buy imported goods at the shopping mall, how does this affect U.S. GDP? O GDP decreases because we are buying foreign goods and not American goods. O GDP is not affected because the goods are not produced in America. O GDP increases by $10,000 because the consumers live in America. O GDP increases by an amount equal to the value added by the stores in the shopping mall. W ASUS 8 R
GDP excludes O the production of nondurable goods. O the market value of unpaid work in the home. O the production of services. O positive changes in inventories.
Companies often produce more goods in a year than they end up selling. How do the unsold goods impact GDP in the year they are produced? O The unsold goods are considered inventory and their value will increase investment spending in the year they are produced. O None of these statements is correct. O The unsold goods are not counted until they are sold in a later year. O The unsold goods are considered durable goods, and their value will increase consumption spending in the year they are produced. « Previous Next » ASUS 14 18 E3 [X & 4 8 9. Y 6
Classify each of the following items as a final good or an intermediate good, and identify whether it is a component of consumption expenditure, investment, or government expenditure on goods and services: Item 1. Packing boxes bought by Amazon.com. Item 2. Starbuck's grande mocha frappuccino bought by a student. Item 3. A new limousine for the president. Item 4. New airplanes bought by United Airlines. Item 1 is and item 2 is O A. an intermediate good; a final good that is consumption expenditure B. a final good that is consumption expenditure; a final good that is consumption expenditure C. a final good that is consumption expenditure; a final good that is investment D. an intermediate good; a final good that is investment Item 3 is and item 4 is O A. an intermediate good; an intermediate good O B. a final good that is government expenditure; a final good that is investment O C. an intermediate good; a final good that is investment D. a final good that is government expenditure; an…
QUESTION 3 Suppose the total market value of all the final goods and services produced in the country of GDPLAND was 530 billion in 2019 (measured in 2019 prices) and 532 billion in the year 2020 (measured in 2019 prices). Which of the following statements is definitely correct? O Nominal GDP increased in GDPLAND between 2019 and 2020. O Average price levels increased in GDPLAND between 2019 and 2020. O Production increased in GDPLAND between 2019 and 2020. O None of these statements is correct.
OC 7.5%. O D. 6.67%. O E. -3%. QUESTION 20 Suppose that a simple economy produces only the goods and services shown in the table. Assume all of the strawberries are used in the production of strawberry jam. Using the information in the table, nominal GDP for this simple economy equals Product Quantity Price Strawberries 250 $1.00 Strawberry jam 30 4.00 Second hand cars 10 950.00 Tablets 85 210.00 Shirts 60 18.00 O A. $19,300. O B. $19,050. OC. $28,800. O D. $28,550, O E. 435 units. Click Save and Submit to save and submít. Click Save All Answers to save all ansuwers.
Suppose that the economy is presently operating at full employment. If there is an increase in national income, which of the following will occur automatically? O A. An increase in tax rates. O B. An increase in unemployment compensation spending. O C. An increase in tax revenues. O D. A decrease in tax rates.
Question 7 Which of the following would be counted in this year's GDP? O a O b O C Od Question & What is the difference between real GDP and nominal GDP? O a O b Column A 1. 2. C d Question 9 Match each phase of the business cycle to its correct definition. 3. The bonus check a worker receives this year the value of a loan taken out this year The value of a savings bond sold by the federal government to investors this year The value of a television produced last year but sold this year 4 Real GDP allows for depreciation; nominal GDP allows for no depreciation. Real GDP includes nonmarket activities; nominal GDP has no nonmarket activities. Real GDP is based on constant prices; nominal GDP is based on the current year's prices. Real GDP is accurate to hundreds of dollars; nominal GDP is accurate to thousands of dollars. period of economic decline marked by falling real GDP a period of economic growth as measured by a rise in real GDP the height of an economic expansion, when real GDP…
Suppose you read in the Wal Street Journal that, during the fourth quarter of 2020, the U.S. economy expanded at the fastest rate in two decades. It follows that one would expect in the unemployment rate and. in real GDP during the fourth quarter of 2020. O a. a decrease; a decrease O b. an'increase; an increase O c. a decrease; an increase O d. an increase; a decrease Next page
Question 7 If the MPC in the economy is 0.75, govemment could shift the aggregate demand curve rightward by $30 billion by cutting taxes by $10 billion. O A. true. O B. false.
When planned aggregate expenditure is less than real GDP, as in the diagram to the right, what happens to firms' inventories? OA. Inventories fall as firms increase output. O B. Inventories accumulate as firms increase production. O C. Inventories fall if production is not scaled back. O D. Inventories accumulate if production is not scaled back. Real Aggregate Expenditure, AE ($100 billions) 100- 90- 80- 60- 50- 40- 30- 20- 10- 'Y = AE 45° 10 20 30 40 50 60 70 80 90 100 Real GDP, Y ($100 billions)
Choose which statement is most correct. Nominal GDP must always equal potential GDP. O a. O b. Real GDP can never exceed potential GDP. O C. Nominal GDP can never exceed potential GDP. O d. Real GDP must always equal potential GDP. O e. At times, real GDP can exceed potential GDP.

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