Suppose that a large portion of the fourth quarter increase in production ends up sitting on shelves as unsold inventory. If product doesn’t get sold, how is it counted in GDP? it is added when measuring GDP, as an element of business investment it is added when measuring GDP, as an element of consumption it is subtracted when measuring GDP, as an element of business investment it is subtracted when measuring GDP, as an element of consumption

Suppose that a large portion of the fourth quarter increase in production ends up sitting on shelves as unsold inventory. If product doesn’t get sold, how is it counted in GDP? it is added when measuring GDP, as an element of business investment it is added when measuring GDP, as an element of consumption it is subtracted when measuring GDP, as an element of business investment it is subtracted when measuring GDP, as an element of consumption

MACROECONOMICS FOR TODAY

10th Edition

ISBN:9781337613057

Author:Tucker

Publisher:Tucker

Chapter5: Gross Domestic Product

Section: Chapter Questions

Problem 9SQ

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Although GDP is a reasonably good measure of a nation's output, it does not necessarily include all transactions and production for that nation. Which of the following scenarios are either not accounted for or measured inaccurately by either the income or the expenditure methods of calculating GDP for the United States? Check all that apply. a. The variety of goods available to consumers b. The costs of air and water pollution c. Expenditures on federal highways d. The value of babysitting services, when the babysitter is paid in cash and the transaction isn't reported to the government When a U.S. company purchases and imports electronic parts from China to use to produce MP3 players within the United States, this purchase increases the (a. government purchases, b. investment, c. consumption) component of GDP while also (a. increasing, b. decreasing) net exports by the same amount. Therefore, the purchase of electronic parts from China causes (a. no change, b. an…
A U.S.-owned automobile factory uses $50 million worth of materials produced in the U.S. and $10 million worth of material purchased from foreign countries to produce $100 million of automobiles. $70 million worth of these automobiles are purchased by U.S. consumers, $25 million are sold in foreign countries, and $5 million are added to inventory. How much of this production is included in U.S. GDP? By how much do these transactions alone affect U.S. net exports?
The table below shows the values for several different components of GDP. Composition of Gross Domestic Product Component LA Consumer durables Consumer nondurables Services Business fixed investment Residential fixed investment Inventories Exports Imports Government purchases What is the value of total gross investment? Instructions: Round your answer to 1 decimal place. Value (billions of dollars) $1,292.7 2,615.4 8,038.8 2,805.0 558.5 80.4 billion 2,320.5 2,863.1 3,093.6
Although GDP is a reasonably good measure of a nation’s output, it is not an accurate measure of a nation’s well-being. Which of the following options are either not accounted for or are measured inaccurately in calculations of GDP for the United States? Check all that apply. A. The variety of goods available to consumersB. Funds spent by state governments to build highwaysC. The costs of overfishing and other overly intensive uses of resourcesD. The value of babysitting services, when the babysitter is paid in cash and the transaction isn’t reported to the governmentE. The parts of a car manufactured in the United States that are produced in Canada
Using the following national income accounting data, compute (a ) GDP, (b) NDP, and ( c) NI. All figures are in billions.
Gross Domestic Product is the sum total of all the goods and ______________, produced and __________, within a country’s borders, for a given period, calculated in a monetary value, which are allocated to the ______________ purchaser. The expenditure approach is the sum of all purchases in the categories of consumption, ______________, government, and net exports on final goods and services for a given period. The largest component of the expenditure approach is ______________ purchases of ______________ goods. The income approach is the sum of all incomes paid to the ______________ categories of ______________, landlords, capitalists, and entrepreneurs for the production of fi nal goods and services for a given period. __________ or employee compensation is the largest component of gross domestic income or factor income in GDP accounting.
Gross domestic product is calculated by adding together f5 % 5 consumer spending, government spending, and all imports. consumer spending, investment spending, and net exports. consumer spending, government spending, and all investments. consumer spending, investment spending, government purchases of goods and services, and net exports. T f6 < 4- 6 f7 & 7 hp H fg বির * 8 fo DII 9 f10 DDI W
What is the value for Gross Domestic Product if consumer spending is $25,486, gross private domestic investment is $8,379, government purchases are $5,367, exports are $2,662, imports are $1,555, wages are $11,769, and indirect business taxes are $1,334? Other values for potential components of GDP are unknown. Enter the value without a $ and without commas. What is the value for Gross Domestic Product if households receive $326 in net interest income, wages equal $13,940, rental receipts on land are $908, total business profits before taxes are $1,765, and indirect business taxes are $1,005? Assume all other types of income are zero for this example. (Sometimes, GDP includes depreciation and net foreign income but I will not be using those in this course.) Enter the value without a $ and without commas.
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Last year, a small nation with abundant forests cut down $200 worth of trees. It then turned $100 worth of trees into $150 worth of lumber. It used $100 worth of that lumber to produce $250 worth of bookshelves. Assuming the country produces no other outputs, and there are no other inputs used in producing trees, lumber, and bookshelves, what is this nation's GDP? In other words, what is the value of the final goods the nation produced including trees, lumber and bookshelves?
Which of the following would increase the consumption component of U.S. GDP? Select one: OA. A Baton Rouge resident purchases 100 shares of Amazon.com stock. B. WalMart, a U.S. company, builds a new store in Oklahoma.. C. LSU purchases a new computer produced in the U.S. for Charles to use in his office. OD. A Baton Rouge resident purchases a new washing machine produced in South Korea for use in her home. E. LSU purchases a new computer produced in China for Charles to use in his office.