The expenditure approach measures GDP by adding togetherSelect one:O A. wages, salaries and supplementary labour income, and other factor incomes.O B. the total expenditures of consumers, firms, net exporters, and by governments at all levels.O C.wages, salaries and supplementary labour income, other factor income, subsidies paid by the government, indirect taxes paid, andincome of nonfarm unincorporated businesses.the total expenditures of consumers and firms.compensation of employees, rental income, corporate profits, net interest, proprietors' income, indirect taxes paid, and capitalconsumption expenditures, and by subtracting subsidies paid by the government.O D.O E.

GDP refers to the monetary value of all final goods and services that are produced in the domestic…

Answered: The expenditure approach measures GDP…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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GDP in an economy is $23,600 billion. Consumer expenditures are $18,000 billion, corporate profits are 600 billion, government purchases are $6,000 billion, and gross private domestic investment is $300 billion, stock purchases are $500 billion. What is the value of the net exports? O+$400 billion O-$700 billion O-$1.800 billion O-$300 billion O+$500 billion
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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)
Consider an economy that produces wood, boats, and has a marketing agency.This year domestic wood production generates revenues of $80. Of this $80 worth of wood, $40were purchased by the boat producer and $40 were sold abroad to a foreign company. The woodproducer paid $40 worth of wages and $10 worth of taxes.The boat producer combines the services of the marketing agency, the wood it purchased from thewood producer, and $20 worth of labor (wages) to produce $120 worth of boats. Its revenues,which include a boat produced in the previous year and that was carried as inventory, are $130.Domestic families buy all these boats. This company pays $10 worth of taxes.The marketing agency, whose sole client is the boat company, generates a revenue of $40 whichis enough to cover its labor costs of $40. This company pays no taxes.The government in this economy uses the $20 worth of taxes and builds a port. The cost of theport is $40 that are paid to workers. This port is partially financed by…
46
E2
Using the data in the table, gross domestic product equals O A. $2,150. B. $1,920. O C. $2,400. O D. $1,940. Corporate profits Net interest Indirect taxes less subsidies Depreciation Compensation of employees Proprietor's income Rental income Personal consumption expenditures Government expenditure on goods and services Net exports of goods and services $200 150 230 250 1,350 150 70 1,400 500 40
Government purchases 30 Consumption 100 Investment spending Exports Imports Wages Interest billions of dollars ($) O $370 billion. 50 O $160 billion. O $130 billion. $310 billion. 40 Government purchases 60 20 190 130 According to the information in table, GDP =
All of the following are components of aggregate expenditure except Select one: O real GDP a. actual government purchases O b. net export O c. planned investment 45 The largest source of government revenues is.

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