Macroeconomics: Principles and Policy (MindTap Course List)
13th Edition
ISBN: 9781305280601
Author: William J. Baumol, Alan S. Blinder
Publisher: Cengage Learning
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Question
Chapter 8.A, Problem 1TY
a)
To determine
To Identify: The transaction included in
b)
To determine
To Identify: The transaction included in gross domestic product and the amount that raises the GDP.
c)
To determine
To Identify: The transaction included in gross domestic product and the amount that raises the GDP.
d)
To determine
To Identify: The transaction included in gross domestic product and the amount that raises the GDP.
e)
To determine
To Identify: The transaction included in gross domestic product and the amount that raises the GDP.
f)
To determine
To Identify: The transaction included in gross domestic product and the amount that raises the GDP.
g)
To determine
To Identify: The transaction included in gross domestic product and the amount that raises the GDP.
h)
To determine
To Identify: The transaction included in gross domestic product and the amount that raises the GDP.
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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?
Which of the following transactions or activities would be counted in your country’s GDP? Explain your answers.
A transportation company acquires a fleet of second-hand vehicles.
The same transportation company acquires 1.000 gallons of gas from a foreign company deducted from the net export component of GDP.
You buy 10 short-term government bonds.
A mining company acquires new government licenses to drill in land the company already owns.
You pay for a new haircut at your local hairdresser.
Foreign residents buy a bundle of your country’s food specialties on an online retail site.
Your parents spend a whole day cooking meals to be handed out to their poorer neighbors.
The local government acquires furniture for newly built schools.
Two telecommunications companies merge.
A non-profit organization buys an apartment to lodge their headquarters.
How would each of the following transactions affect the GDP of the United States (Increase, decrease, or does not
change)? The U.S. government pays $1 billion in salaries for government workers. GDP will... The U.S. government
pays $1 billion to Social Security recipients. GDP will... The U.S. government pays a U.S. firm $1 billion for newly
produced airplane parts. GDP will... The U.S. government pays $1 billion in interest to holders of U.S. government
bonds. GDP will...
Chapter 8 Solutions
Macroeconomics: Principles and Policy (MindTap Course List)
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- Question 15 Which of the following would be included in GDP, the purchase of staplers from Staples by a car dealership and by Carl for his kids to play with at home. Both are included in BDP Neither would be included in GDP Carl's purchase would be included but the car dealerships would not The car dealership's purchase would be included but Carl's would not Question 16 Which of the following would lead to growth in GDP Investment in plant and equipment by business Investments in stocks by your 401K Purchase of a home All of the above will lead to GDP growtharrow_forwardWhich of the following would be included in the calculation of gross domestic product (GDP)? The value of transfer payments The value of the sale of a used car The value of the sale of 1,000 shares of Apple stock The value of spending on new machinery and equipment The investment (I) portion of GDP includes the amount spent on capital goods. the amount spent on stocks and bonds. the amount spent on consumer goods that last more than one year. the amount spent on purchases of jewelry.arrow_forwardAlthough GDP is a reasonably good measure of a nation's output, it does not necessarily include all transactions and production for that nation. Which of the following scenarios are either not accounted for or measured inaccurately by either the income or expenditure methods of calculating GDP for the United States? Check all that apply. The value of babysitting services, when the babysitter is paid in cash and the transaction isn't reported to the government The costs of air and water pollution Federal highway payments The variety of goods available to consumers The parts of an American car that are produced in Canadaarrow_forward
- Suppose you are given the following information about some hypothetical economy and its national income accounts. Use this information to answer the questions that follow. (Amounts are in millions of Kshs.) Indirect Business Taxes 459.50 Corporate profits 604.45 Corporate profits taxes 234.70 Retained earnings 165.40 Proprietors' income 519.20 Rental Income 31.05 Net Interest 585.55 Exports 842.85 Imports 1190.20 Income Receipts from rest of world 427.8 Income Payments to rest of world 377.45 Net National Product 6190.4 Government expenditures for Goods and Services 1358.25 Personal current Transfer receipts 871.15 Social Security Taxes (employee & employer) 490.75 Personal Consumption expenditures 4892.85 Gross Private Domestic Investment 1082.45 Disposable personal income 5128.75 a. Find GDP and GNP b. Find depreciation (capital consumption allowance) c. Find National Incomearrow_forwardProblem #28- Last year, a small nation with abundant forests cut down $200 worth of trees. $100 worth of trees were then turned into $150 worth of lumber. $100 worth of that lumber was used to produce $250 worth of bookshelves. Assuming the country produces no other outputs, and there are no other inputs used in the production of trees, lumber, and bookshelves, what is this nation’s GDP? In other words, what is the value of the final goods produced including trees, lumber and bookshelves?arrow_forwardA country has just one resource - labor - that it can use to produce two goods, books and clothing. At first the country has 10 million workers, and each worker can produce either 2 books or 5 units of clothing per day. Suppose the country wants to produce 8 million books. Suppose the price of a book is $10, and the price of a unit of clothing is $20. Using this information and your answer from the last question, calculate the country's GDP (measured in dollars per day). Enter your answer as a number in the space below. (For example, if your answer is $3.75 million, enter it as 3750000 in the space below.)arrow_forward
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