identify the category under which the following sums of money enter the expenditure-based national income accounts.ExampleCategoryFirm X sells 50,000 pairs of shoes it produces to foreign retail stores, who then sell the shoes to their customers at $35 per pair.The government built 150 bridges throughout the country for $2 billionInvestmentRaymond bought a second - hand, three year old bike from a friend for $300ExportsFirm B sources watches worth $450 each from international factories and sells them to its domestic CustomersGovernment expenditureJulia bought a new apartment in New York City for $650 000Not includedThe market value of the watches sold by Firm B will beMin the expenditure-based GDP calculation.ConsumptionImportsWhich of the following identities is the national income accounting identity?O A. Production = Income - ExpenditureO B. Y=C+1+G+X- MO C. Production = Expenditure = IncomeO D. Y=C+ +G+X+ MClassify the following individuals according to the types of incomes they receive in the following examples.ExampleType of incomeRebecca enjoys the benefits of living in her apartment in central London.

GDP (gross domestic product) is the value of all goods and services that are produced by an economy…

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Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter4: The Aggregate Economy

Section: Chapter Questions

Problem 8E

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Question

identify the category under which the following sums of money enter the expenditure-based national income accounts.
Example
Category
Firm X sells 50,000 pairs of shoes it produces to foreign retail stores, who then sell the shoes to their customers at $35 per pair.
The government built 150 bridges throughout the country for $2 billion
Investment
Raymond bought a second - hand, three year old bike from a friend for $300
Exports
Firm B sources watches worth $450 each from international factories and sells them to its domestic Customers
Government expenditure
Julia bought a new apartment in New York City for $650 000
Not included
The market value of the watches sold by Firm B will be
Min the expenditure-based GDP calculation.
Consumption
Imports
Which of the following identities is the national income accounting identity?
O A. Production = Income - Expenditure
O B. Y=C+1+G+X- M
O C. Production = Expenditure = Income
O D. Y=C+ +G+X+ M
Classify the following individuals according to the types of incomes they receive in the following examples.
Example
Type of income
Rebecca enjoys the benefits of living in her apartment in central London.

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