Question 1. Please answer the following questions related to Gross domestic product (GDP).a. There are at least three ways to define or measure Gross Domestic Product (GDP), asdiscussed in our class. Please briefly describe these three definitions of GDP.b. Assume that total output in an economy consists of 400 apples and 600 oranges andthat apples cost $1 each and oranges cost $0.50 each. The labour cost of the productionis $50. In this case, what is the value of GDP?

A) Income Approach :The pay approach begins with the income acquired from the production of labor…

There are at least three ways to define or measure Gross Domestic Product (GD discussed in our class. Please briefly describe these three definitions of GDP. Assume that total output in an economy consists of 400 apples and 600 oranges

There are at least three ways to define or measure Gross Domestic Product (GD discussed in our class. Please briefly describe these three definitions of GDP. Assume that total output in an economy consists of 400 apples and 600 oranges

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Which of the following statements best describe how economists calculate GDP? a. Economists at the Census bureau collect data from surveys sent to consumers, private firms and government agencies and add them up on a yearly basis. b. Economists at the Bureau of Economic Analysis pull together data on sales, imports, exports, government purchase and investments from various government sources every 3 months. c. Economists at the Bureau of Labor Statistics collect data from surveys sent to consumers, private firms and government agencies and add them up every 3 months. d. Economists at the Congressional Budget Office calculate GDP for a given year by adjusting the previous year’s GDP with inflation. Which statement best describes the difference between Nominal and Real GDP? a. Nominal GDP is Real GDP that has been adjusted to remove the distorting effects of inflation. b. Real GDP is calculated using current market prices, while Nominal GDP is calculated using the…
1) Jane’s Computers buys 100 monitors for $50 each from Don and pays its employees $10,000 to build computers. The store then sells the 100 computer/monitor combinations for $200 each. What is the contribution to GDP of the computer/monitor combinations? Explain how the combination would be broken down using the three different approaches to calculating GDP.
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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.
I completely understand that you will not do th entire worksheet but could you do a couple of them and explain to me how to finish the rest and how to calcuate the overall gdp? Thank you
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Instructions: Answer the following questions. Make sure to number your answers when you upload your response. Why do economists include only final goods in measuring GDP for a particular year? Why don’t they include the value of stocks and bonds sold? Why don’t they include the value of used furniture bought and sold? Which of the following are included in this year’s GDP? Explain your answer in each Interest on an AT&T corporate bond. b. Social security payments received by a retired factory worker. The unpaid services of a family member in painting the family home. The income of a dentist. e. The money received by Smith when she sells her economics textbook to a book buyer. The monthly allowance a college student receives from Rent received on a two-bedroom apartment. The money received by Josh when he resells his current-year-model Honda automobile to Kim. The publication of a college textbook. j.…
Please explain the difference between calculating GDP using the expenditure approach and the income approach.
Consider an economy where three goods are produced: strawberries, ice creams and coolers. Of these three goods, only strawberries and ice cream are consumer goods, that is, only strawberries and ice creams are purchased by consumers. Coolers, the third type of good, are also final goods, but they are purchased by businesses only, not households. The total quantities (produced and consumed) and prices are presented in the table below: (a) Calculate nominal GDP for the years 2017, 2018 and 2019. (b) Calculate real GDP, expressed in dollars of the year 2017, for the years 2017, 2018 and 2019 Using 2018 as the base year, calculate the CPI inflation rate between the years 2017 and 2018, and between 2018 and 2019.