Macroeconomics: Principles, Problems, & Policies
20th Edition
ISBN: 9780077660772
Author: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn Dr.
Publisher: McGraw-Hill Education
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Question
Chapter 7, Problem 4P
Sub part (a):
To determine
Calculation of GDP and NDP.
Sub part (a):
Expert Solution
Explanation of Solution
GDP income approach can be calculated as follows.
The value of GDP from expenditure approach is $388.
GDP expenditure approach can be calculated as follows
The value of GDP from income approach is $388.
Net domestic product can be calculated as follows.
The value of net domestic product is $361.
Economics Concept Introduction
Concept introduction:
Gross Domestic Product (GDP): It is the worth of final goods and services produced in an economy within a particular time framework.
Net Domestic Product (NDP): It is the aggregate money value of all final commodities and services produced in the country in a given time period, minus net
Sub part (b):
To determine
Calculation of national income .
Sub part (b):
Expert Solution
Explanation of Solution
National income from NDP can be calculated as follows.
National income is $357.
National income from income and tax can be calculated as follows.
National income is $357.
Economics Concept Introduction
Concept introduction:
Gross Domestic Product (GDP): It is the worth of final goods and services produced in an economy within a particular time framework.
Net Domestic Product (NDP): It is the aggregate money value of all final commodities and services produced in the country in a given time period, minus net depreciation.
Sub part (c):
To determine
Calculation of personal income.
Sub part (c):
Expert Solution
Explanation of Solution
Personal income can be calculated as follows.
Personal income is $291.
Sub part (d):
To determine
Calculation of disposable income.
Sub part (d):
Expert Solution
Explanation of Solution
Disposable income can be calculated as follows.
Disposable income is $265.
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Consider an economy that exhibits both population growth (L grows at rate n) and
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Chapter 7 Solutions
Macroeconomics: Principles, Problems, & Policies
Ch. 7 - Prob. 1DQCh. 7 - Prob. 2DQCh. 7 - Prob. 3DQCh. 7 - Prob. 4DQCh. 7 - Prob. 5DQCh. 7 - Prob. 6DQCh. 7 - Prob. 7DQCh. 7 - Prob. 8DQCh. 7 - Prob. 9DQCh. 7 - Prob. 10DQ
Ch. 7 - Prob. 11DQCh. 7 - Prob. 12DQCh. 7 - Prob. 13DQCh. 7 - Prob. 1RQCh. 7 - Prob. 2RQCh. 7 - Prob. 3RQCh. 7 - Prob. 4RQCh. 7 - Prob. 5RQCh. 7 - Prob. 6RQCh. 7 - Prob. 7RQCh. 7 - Prob. 8RQCh. 7 - Prob. 9RQCh. 7 - Prob. 10RQCh. 7 - Prob. 1PCh. 7 - Prob. 2PCh. 7 - Prob. 3PCh. 7 - Prob. 4PCh. 7 - Prob. 5PCh. 7 - Prob. 6PCh. 7 - Prob. 7PCh. 7 - Prob. 8P
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