Which of the following description best explains the expenditures approach to calculating GDP?O consumer spending, private investment, government spending, exports minus importsO consumption, business purchase of raw material, government social security payments, and exportsO investment, consumption, wages, and importsO savings, income, investment, and exports

Answered: Which of the following description best…

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 would be included in the category of investment spending in the calculation of GDP? O The purchase of stock in MacDonald's. The purchase of a new machine by Ford. O The selling of IBM corporate bonds. O The buying of shares of Janus mutual funds.
What is total expenditure in an economy? Total expenditure is equal to expenditure ______. A. on goods and services produced in the economy and goods imported. B. by households, firms, governments, and the rest of the world on goods and services produced in the economy. C. by firms and governments on goods and services produced in the economy
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
Use the following table to answer this question The components of GDP in the accompanying table were produced by the Bureau of Economic Analysis. Consumer spending Durable goods Nondurable goods Services Investment spending Fixed investment spending Nonresidential Structures Equipment and software Residential Change in private inventories Net exports Exports Imports Government purchases of goods and services Federal Category National defense Nondefense State and local What is the value of l? O A. $9,710.2B. O B. $2,130.4B. O C. $2,674.8B. O D. $5,794.4B Components of GDP in 2020 (billions of dollars) $1,082.80 2,833.00 5,794.40 2,134.00 1,503.80 480.3 1,023.50 630.2 -3.6 1,662.40 2,370.20 979.3 662.2 317.1 1.695.50
In the GDP equation, business spending is referred to as: O Consumption Investment O Government O Net Exports
Suppose a closed economy has a national income of $260 milion. $535 midon in private savings, $200 millon worth of tax evenue, and $150 milion in govemment spenting what is the consumprion expenditure in this economy? Os125 milion Os155 milion OS385 mition Ossa5 milion OS645 milion
Explain how net exports affect the U.S. economy.Describe both positive and negative impacts onGDP. Why do national income accountants usenet exports to compute GDP, rather than simplyadding exports to the other expenditure componentsof GDP?
Whether or not we measure the economy's expenditure or its income: O national production national expenditure > national income.
Question 18 Which of the following is included as investment in GDP? i. cars produced during the year but unsold at the end of the year ii. new capital equipment produced and purchased during the year iii. purchases of a company's stocks and bonds Oi only O ii only O iii only i and ii O i, ii, and iii Moving to another question will save this response.
In a small economy, consumption spending is $7,500, government purchases are $2,200, gross investment is $500, exports are $2,100, and imports are $3,000. What is gross domestic product? $9,300 O $15,300 O $11,100 O $12,300
QUESTION 17 In determining GDP by the expenditures method, it is appropriate to use net investment rather than gross investment as a measure of investment spending. O True O False
Between 2017 and 2018, the exports of the X economy decreased by $5 billion and its imports increased by $5 billion. All else equal? By how much has the GDP changed between the two years? Select one: a. The change in net exports will decrease GDP by $5 billion. O b. The change in net exports will decrease GDP by $10 billion. C. d. The change in net exports will increase GDP by $5 billion. O e. The decrease in exports is offset by the decrease in imports, so there is no change in net exports and no effect on GDP.

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