What components of GDP (consumption, investment, government spending, net exports), if any, would each of the following affect and how? Explain. b) A family buys a new television c) You treat your Saudi Arabian friend a nice dinner at hotel Serina. d) Bangladesh government allocates 500 crore taka for naval expenses.

What components of GDP (consumption, investment, government spending, net exports), if any, would each of the following affect and how? Explain. b) A family buys a new television c) You treat your Saudi Arabian friend a nice dinner at hotel Serina. d) Bangladesh government allocates 500 crore taka for naval expenses.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter15: Measuring A Nation's Income

Section15.2: The Measurement Of Gdp

Problem 2QQ

See similar textbooks

Related questions

Q: For the country of Madagascar government spending was $15,000 in 2007. Consumption was $88,000,…

A: GDP under expenditure method is computed by adding up following items:1. Consumption expenditure of…

Q: Is it reasonable or does it make sense, that while US exports are added to GDP, US imports are…

A: The question is asking about the logic behind the treatment of exports and imports in the…

Q: Gross Domestic Product (GDP) is the broadest measure of output for an economy. However, GDP does…

A: GDP stands for gross domestic product. It is the value of all final goods and services produced in…

Q: a) There are two methods of calculating GDP: income approach and expenditure approach. According to…

A: a) When calculating a country's GDP, the two important methods for the calculation are the…

Q: Based on the following data, GDP would equal while Net National Product equals. in Billions…

A: The term "Gross Domestic Product" refers to the total monetary value of all final goods and services…

Q: Explain the two main difficulties that arise in comparing the GDP of different countries. Which…

A: There are three manners by which this action can be evaluated, income, consumption, and worth…

Q: In an economy, Exports = $2100 million Imports = $1750 million Calculate net exports

A: Exports are goods and services delivered from one country to another. Imports are goods and services…

Q: Calculate the real GDP in this country. (Need help with all)

A: 1. Real GDP = consumption spending + investment + Government spending = 900 + 400 + 200 = 1500 $…

Q: As an economist with the World Bank you have been asked to measure the Gross Domestic Product for…

A: Gross domestic product (GDP) measures the market value of final goods and services produced by an…

Q: Q.7.2 Use the following composition of expenditure for the economy of a country named the Republic…

A: We are going to calculate Gross domestic expenditure to answer this question.

Q: According to the figure showing 2020 GDP for selected countries, how much larger (in percentage…

A: GDP is the sum total of market value of final goods and services produced in a country during a…

Q: The following table lists 2012 GDP per capita for four countries. The data are given in the national…

A: Purchasing power parity (PPP) is the rate at which the currency of one country has to be converted…

Q: Consumption $400 Imports…

A: The given information is as follows: Consumption $400…

Q: Which of the following will cause GDP to increase? a) I hire my neighbor's teenage son to mow my…

A: The economies have various entities which tend to conduct various economic activities which helps in…

Q: When Americans buy goods produced in Canada, Canadians earn income from American expenditures. Does…

A: GDP includes the market value of goods and services within a country during a given period. When…

Q: South Africa has a GDP of $10 billion (measured in U.S. dollars) and a population of 45 million.…

A: South Africa has a GDP of $10 billion (measured in U.S. dollars) and a population of 45 million. GDP…

Q: han it was 60 years ago. What does this tell us about the well-being of U.S. residents?

A: Gross Domestic Product is considered to be a good and reasonable measure for measuring the well…

Q: What is GDP (50 words only)

A: The Gross Domestic Product is the summation of the money value of all the final goods and services…

Q: Use the data below to calculate GDP using the expenditure approach. (I intentionally left out some…

A: The Gross domestic product is the final value of goods and services produced in domestic economy in…

Q: Q.7.2 Use the following composition of expenditure for the economy of a country named the Republic…

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

Q: How does U.S. gross domestic product (GDP) differ from U.S. gross national product (GNP)? Select…

A: Domestic Product is the value of goods and services which are produced by residents and non…

Q: What term describes the total value of all goods and services produced within a country's borders…

A: The issue here is to recognize the financial term that characterizes the all-out worth of all labor…

Q: Since it is counted as investment, why doesn’t the purchase of earthmoving equipment from China by a…

A: GDP estimates the financial worth of conclusive labor and products — that is, those that are…

Q: What is the GDP per capita of a country with a population of 50 million and a GDP of $1.5 trillion?

A: GDP per capita is a measure of the average economic output, or income, per person in a country. It…

Question

100%

What components of GDP (consumption, investment, government spending, net exports), if any, would each of the following affect and how? Explain.

b) A family buys a new television

c) You treat your Saudi Arabian friend a nice dinner at hotel Serina.

d) Bangladesh government allocates 500 crore taka for naval expenses.

e) Your uncle lives in Canada and he sends $500 at every month.

f) Transcom establishes a new factory at SAVAR

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Q.7.2 Use the following composition of expenditure for the economy of a country named the Republic of Tapuwa, for the year ended 2019 to answer the questions below: COMPONΕNT R millions Consumption expenditure (C) 9 000 Investment (I) 6 500 Government spending (G) 7 000 Exports (X) 1 800 Imports (Z) 2 400 Depreciation 700 Foreign payment to the rest of the 300 world Foreign payment from the rest of the 250 world Show all calculations and formulae. Calculate the value of the country's GDE (Gross Domestic Expenditure).
Q.7.2 Use the following composition of expenditure for the economy of a country named the Republic of Tapuwa, for the year ended 2019 to answer the questions below: COMPONENT R millions Consumption expenditure (C) 9 000 Investment (I) 6 500 Government spending (G) 7 000 Exports (X) 1 800 Imports (Z) 2 400 Depreciation 700 Foreign payment to the rest of the 300 world Foreign payment from the rest of the 250 world Show all calculations and formulae. Q.7.2.1 Calculate the value of the country's GDE (Gross Domestic Expenditure). © The Independent Institute of Education (Pty) Ltd 2020 20 Q.7.2.2 Compute the value for the country's GDP (Gross Domestic Product) at market price. Q.7.2.3 Determine the value of the country's NNI (Net National Income) at market price. Q.7.2.4 If it is predicted that the GDP will increase to 22 000 in 2020, calculate the growth rate between 2019 and 2020. Q.7.2.5 The measure of GDP for economic growth is not always ect. Describe any two problems that are…
Which COMPONENTS (IF ANY) of U.S. GDP (consumption C, investment I, government spending G, and/or net exports NX) THIS YEAR would be affected and HOW (INCREASE OR DECREASE) if: (a) you buy an OLD house in Coral Gables and start living in it (b) Jackson Memorial Hospital buys a new MRI scanner produced in Germany (c) Whirlpool produces some kitchen appliances but does not manage to sell them this year (d) you cook yourself a dinner (ignore the cost of all ingredients and the increase in your utility bill)
Consider Table 1 above. What is Uruguay's GDP per capita? A) $1,998.34 B) $7,454.30 C) $11,332.02 D) $16,190.06
How does U.S. gross domestic product (GDP) differ from U.S. gross national product (GNP)? Select one: a. GNP = GDP - losses from depreciation b. GNP = GDP - depreciation - retained earnings c. GNP = GDP + transfer payments to households +- indirect sales taxes d. GNP = GDP + income earned by U.S. citizens abroad - income that foreign citizens earned in the U.S.
According to the figure showing 2020 GDP for selected countries, how much larger (in percentage terms) is America's GDP than: 21.43 14.34 5.08 United China Japan States b. Russia? % larger Copyright © McGraw Hill LLC. Permission required for reproduction or display. GROSS DOMESTIC PRODUCT (in U.S. $ trillion) % larger 3.86 2.87 2.83 1.70 1.27 Germany India Great Britain Russia Mexico Source: Gross Domestic Product 2020. The World Bank Group, March 2021 0.53 Sweden Instructions: Round your responses to the nearest whole number. a. Germany? 0.21 Greece 0.01 Haiti
What is the GDP per capita of a country with a population of 50 million and a GDP of $1.5 trillion? A) $30,000 B) $15,000 C) $3,000 D) $1,500
Consumption $400 Imports $ 10 Net investment $ 20 Government purchases $ 100 Exports $ 20 Capital consumption allowance $ 20 Statistical discrepancy $ 6 Receipts of factor income from the rest of the world $ 10 Payments of the factor income to the rest of the world $ 13 What is the GDP for this economy? What is the GNP for this economy? What is the NNP for this economy? What is the national income for this economy? What is the gross investment in for this economy?
a) There are two methods of calculating GDP: income approach and expenditure approach.According to your opinion which method is better suited for calculating the GDP of Bangladesh?Briefly explain the reasons behind your answer.b) When calculating the GDP using the expenditure method why do we subtract “imports”?c) When calculating the GDP of Bangladesh using the income approach why do we add the“earnings of foreigners living in Bangladesh”?d) When calculating the GDP of Bangladesh using the income approach why do we subtract“earnings by Bangladeshis living in foreign countries”?
Consider Table 1 above. What is Paraguay's GDP per capita? A) $2,110.17 B) $5,415.19 C) $11,432.91 D) $19,775.24
According to the figure showing 2020 GDP for selected countries, how much larger (in percentage terms) is America’s GDP than: a. Great Britain? b. Haiti?
Use the data below to calculate GDP using the expenditure approach. (I intentionally left out some of the income categories so that you must use the expenditure approach). Then calculate NDP, NI, PI, and DI. (All figures are in billions of dollars): Consumption of Fixed Capital (Depreciation) Corporate Income Taxes Dividends Exports Government Purchases Imports Indirect Business Taxes Interest Net foreign factor income earned in the U.S. Gross Private Domestic Investment Personal Consumption Expenditure Personal Taxes Proprietor's Income Rents Social Security Contributions Transfer Payments Undistributed Corporate Profits 543.4 124.3 103.2 483.8 1071.6 597.1 318.4 426.8 39.4 897.4 3062.6 566.6 354.2 47.1 379.5 475.8 126.7 GDP = $ NDP = $ NI-S PI=S DI = $ Billion Billion Billion Billion Billion