In April 2020, the US government made a one-time payment of US$1,200 to each US resident as part of an economic rescue package. An estimated 150 million US residents were expected to receive this one-time payment. Explain the impact of this on government spending under the expenditure approach to computing GDP. Group of answer choices Government spending rises by US$1,200 Government spending rises by US$125,000 Government spending rises by US$180,000 million. There is no change to government spending

In April 2020, the US government made a one-time payment of US$1,200 to each US resident as part of an economic rescue package. An estimated 150 million US residents were expected to receive this one-time payment. Explain the impact of this on government spending under the expenditure approach to computing GDP. Group of answer choices Government spending rises by US$1,200 Government spending rises by US$125,000 Government spending rises by US$180,000 million. There is no change to government spending

MACROECONOMICS FOR TODAY

10th Edition

ISBN:9781337613057

Author:Tucker

Publisher:Tucker

Chapter9: The Keynesian Model In Action

Section: Chapter Questions

Problem 3SQ

See similar textbooks

Similar questions

$3 trillion$6 trillion$8.5 trillion$11.5 trillion
In its Budget presentation the Government proposes a lump sum tax increase of $80million. On the other hand, the Government decides to increase spending by $60 million. The MPC for this nation is estimated at 90 percent (0.9). What will be the impact on GDP and by how much?
The following table contains data for a hypothetical closed economy that uses the dollar as its currency. Suppose GDP in this country is $1,800 million. Enter the amount for government purchases.
The following table shows data on personal consumption expenditures, gross private domestic investment, exports, imports, and government consumption expenditures and gross investment for the United States in 2007, as published by the Bureau of Economic Analysis. All figures are in billions of dollars. Fill in the missing cells in the following table to calculate GDP. Components Personal Consumption Expenditures (CC) $9,734.2 Gross Private Domestic Investment (II) $2,125.4 Exports (XX) $1,643 Imports (MM) $2,351 Net exports of goods and services (X−MX−M) Government Consumption Expenditures and Gross Investment (GG) $2,689.8 Gross domestic product (GDP) This method of calculating GDP, which involves summing the , is called the approach.
The table below includes data for a one-year period required to calculate GDP from the income side for a teeny-tiny economy. Gross investment expenditure Wages and salaries Consumption expenditure Interest and investment income Business profits Depreciation Indirect taxes less subsidies Net exports TABLE 20-4 $402.00 $1741.00 $1302.40 $99.40 $70.40 $199.20 $175.20 $94.00 Refer to Table 20-4. What is the value of GDP, as calculated from the income side? $2010.00 $1982.60 $1986.00 $2584.40 $2285.20
The following data about a hypothetical economy are in billions of dollars. Personal Consumption Expenditures $4,500 Consumption of Fixed Capital 150 Gross Private Domestic Investment 800 Government Purchases 950 Exports 65 Imports 85 Refer to the above data. GDP in this economy is: Multiple Choice $6080 billion. $6230 billion. $6380 billion. $6400 billion.
Suppose the data BELOW is for a given year from the annual Economic Report of the President. Calculate GDP using the expenditure approach (Amount in billions of dollars): Corporate profits: $ 305Depreciation: $ 479Gross private domestic investment: $716Personal taxes: $ 565Personal saving: $120Government spending: 924Imports: $ 547Exports: $ 427Personal consumption expenditures: $ 2,966Indirect business taxes: $ 370Contributions for Social Security (FICA): $ 394Transfer payments and other income: $ 967
Savings and wealth - Although the United States is one of the richest nations in the world, it is also one of the world's largest debtor nation. We often hear that the problem is our low savings rate. Suppose policy makers attempt to rectify this be encouraging greater savings in the economy. What could they do to make you save more? Would raising minimum wage help? What effects would their successful attempts have on GDP? Is this a good or bad idea? What can you do to increase your savings rate? Also, how is wealth related to savings?
The figure shows the flows of expenditure and income in an economy. In 2013, U was $2.0 trillion, V was $0.5 trillion, W was $5.0 trillion, J was $1.5 trillion, and Z was - $1.5 trillion. Calculate total income, net taxes, and GDP.
Use the following table to answer the next question. The following national income data for an economy is in billions of dollars. Consumption = 5,100 Investment = 1,100 Government Taxes = 1,050 Government Purchases = 1,400 Exports = 950 Imports = 850 Net foreign factor income = 20 GDP for this economy is $7,700 billion $6,400 billion $10,470 billion $8,500 billion
They may or may not be in the right order. please help.
The following are national income account data for a hypothetical economy in billions of dollars: gross private domestic investment ($320), imports ($40), exports ($22), personal consumption expenditures ($2,460), and government purchases ($470). What is GDP in this economy?