For her statement of income, Maricela indicates the following amounts for the present year: $80,000 from employment, $2,000 interest from bank accounts, and $25,000 profits and dividends. Of this income, she has spent $50,000 on food and other consumption goods, $20,000 on vacations abroad, saved $10,000 in her retirement account, spent $20,000 on purchasing extra shares and $10,000 on new computers for her business. a) Define the term Gross Domestic Product (GDP). b) What was the increase in GDP generated by Maricela's activity? c) What are her certain contributions to consumption, investment, and net exports? d) What is the value of production that was newly created by Maricela's productive activity?
For her statement of income, Maricela indicates the following amounts for the present year: $80,000 from employment, $2,000 interest from bank accounts, and $25,000 profits and dividends. Of this income, she has spent $50,000 on food and other consumption goods, $20,000 on vacations abroad, saved $10,000 in her retirement account, spent $20,000 on purchasing extra shares and $10,000 on new computers for her business. a) Define the term Gross Domestic Product (GDP). b) What was the increase in GDP generated by Maricela's activity? c) What are her certain contributions to consumption, investment, and net exports? d) What is the value of production that was newly created by Maricela's productive activity?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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For her statement of income, Maricela indicates the following amounts for the present year: $80,000 from employment, $2,000 interest from bank accounts, and $25,000 profits and dividends. Of this income, she has spent $50,000 on food and other consumption goods, $20,000 on vacations abroad, saved $10,000 in her retirement account, spent $20,000 on purchasing extra shares and $10,000 on new computers for her business.
a) Define the term Gross Domestic Product (GDP).
b) What was the increase in GDP generated by Maricela's activity?c) What are her certain contributions to consumption, investment, and net exports?
d) What is the value of production that was newly created by Maricela's productive activity?
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