Why do national income accountants include indirect business taxes in the income approach to GDP computation? Group of answer choices Indirect business taxes are the allowances for the portion of capital worn out by producing GDP. Indirect business taxes are part of firms' profits. Indirect taxes are income payments to suppliers of resources. Indirect business taxes are income for the government received through collection by firms.

Q: What are government transfer payments? Are they included as part of the government spending…

A: In an economy, all the economic activities performed by the citizens that resulted in income value…

Q: Personal Consumption Expenditures $400 Government Purchases 128 Gross Private Domestic Investment 88…

A: Formula:  National income = Personal Consumption Expenditure + Government purchase + Gross Private…

Q: Al's Aluminum Company sells $1 million worth of aluminum to Shiny Foil Company, which uses the…

A: The Gross Domestic Product (GDP) is the final value of all goods and services produced within a…

Q: c. There are two methods to compute national income: (1) add up total and (2) add up total domestic…

A: Macroeconomics examines the working, composition, and dynamics of an economy. To comprehend and…

Q: d. If imports were to increase by $16000 so they are now equal to $32000, solve for net exports…

A: Real GDP Consumption Ig Government Export Import Net Export…

Q: Using the following national income accounting data, compute (a) GDP, (b) NDP, and () NI. All…

A: GDP is a macroeconomic measure used in the computation of the aggregate total output produced in an…

Q: Suppose that California imposes a sales tax of 10 percent on all goods and services. A Californian…

A: Sales tax is a government-imposed consumption tax levied on the sale of goods and services,…

Q: Which of the following are counted in this year's GDP explain your answer in each case a flashy car…

A: The gross domestic product of an economy is the aggregate value of all the final goods and services…

Q: Along with government spending, what THREE factors make up gross domestic product (GDP) under the…

A: GDP = Household spending + Gross investment + Government spending + Net exports

Q: If households pay $1,000 in interest payments and receive $1,200 in interest, wages equal $9,000,…

A: The gross domestic income measures the economic activity of a country by summing up the income…

Q: In Zionville, GDP is $26,500. Consumption spending is $12,000, Investment spending is $5000, exports…

A: GDP is the sum of consumption(C) investment(I), government expenditure(G) and net export(NX)

Q: Which of the following answer choices best describes a consumption expenditure category in the…

A: The objective of the question is to identify the correct description of a consumption expenditure…

Q: Explain any two items which are included in the expenditure method of national income?

A: According to the given question According to the expenditure method the national income is basically…

Q: Using the following national income accounting data, compute GDP by both the expenditures and income…

A: A systematic approach to measure and track the economic activity and performance of a country is…

Q: GDP tends to overstate economic welfare, because it does not include certain nonmarket activities…

A: GDP is defined as the total production of all goods and services within territory of the country in…

Q: a. Based on the data, calculate the following values: (Enter your responses as integers) L Calculate…

A: GDP is calculated as C+I+G+(NX) = 385+ 106+304+(140-111) = 824 billion dollars

Q: (a) Explain the difference between government spending and the government Purchases of goods and…

A: Since you have asked multiple questions, we will answer the first question for you. If you require…

Q: GDP is not a perfect measure of social welfare and the society's economic well-being because…

A: GDP is the production of goods and services during financial year. Rise GDP does not mean that…

Q: Explain how gross domestic product is calculated using each of the following: the income approach…

A: Gross Domestic Product ( GDP ) refers to the market value of the final goods and services produced…

Q: Using the table below, calculate the indicated values. Sector Consumption Investment Government…

A: Givena) Gross domestic product is calculated as ;= Consumption+ investment+ goverment spending+ net…