Question

a) The business cycle model shows short-term fluctuations in the level of economic activity along a...

a) The business cycle model shows short-term fluctuations in the level of economic activity along a long-term trend. Examine the two business cycle phases that can occur in a nation. ANSWER: b) Suppose the Following information was published by Happy land Republic in 2017: Item Amount (AUD billion) Household consumption 1029.81 Government consumption 340.92 Exports 386.39 Gross private domestic investment 352.69 Imports 386.95 Government investment 88.19 Use the information to calculate Happy land Republic’s GDP in 2017.

Homework Answers

Answer #1

a) Business cycle phase that can occur in an economy is:

Peak: It occurs when economy is performing at its best, unemployment is at its lowest, GDP is rising.

Trough: It occurs when economy is at its lowest, unemployment at its peak and there is negligible GDP growth.

b) Aggregate demand = Consumption + Government Consumption + Government Investment + Private Investment + Exports - Imports

Aggregate demand = 1,029.81 + 340.92 + 88.19 + 352.69 + 386.39 + 386.95 = 2,584.95

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Examine the fundamental causes of a nation’s business cycle fluctuations. Also, examine the relationship between total...
Examine the fundamental causes of a nation’s business cycle fluctuations. Also, examine the relationship between total spending by government and consumers in a nation and the location of the countries’ GDP on the business cycle?
Exhibit 5-11 GDP data (billions of dollars) Personal consumption expenditures $4,750 Exports 810 Government spending 1,400...
Exhibit 5-11 GDP data (billions of dollars) Personal consumption expenditures $4,750 Exports 810 Government spending 1,400 Social Security taxes 600 Depreciation 450 Indirect business taxes 550 Imports 850 Gross private domestic investment 900 Corporate income taxes 200 Personal taxes 800 Corporate profits 50 Transfer payments 700 In Exhibit 5-11, personal income (PI) is: $9,210 billion. $8,510 billion. $6,560 billion. $6,610 billion. $10,910 billion.
Given the following information answer the following questions: Personal Consumption Expenditures = 1000 Compensation to Employees...
Given the following information answer the following questions: Personal Consumption Expenditures = 1000 Compensation to Employees = 900 Gross Domestic Private Investment = 300 Gross Business Fixed Investment = 250 Net Operating Surplus = 250 Government Purchases of Goods and Services = 330 Taxes on Imports and Production = 200 Net exports = -30 Consumption of Fixed capital=250 a) What is the value of GDP measured in terms of spending? b) What is the value of GDP measure in terms...
The following table provides the economic data for a country in a particular year. Based on...
The following table provides the economic data for a country in a particular year. Based on the information, calculate the value of GDP Consumption expenditures $40 Imports $60 Government purchases of goods and services $20 Construction of new homes and apartments $30 4 Sales of existing homes and apartments $50 Exports $50 Government payments to retirees $20 Household purchases of durable goods $20 Beginning-of-year inventory $30 End-of-year inventory $20 Business fixed investment $40
1. Calculate GDP, NDP, NI, PI, and DI from the following information. All numbers are in...
1. Calculate GDP, NDP, NI, PI, and DI from the following information. All numbers are in billions of dollars. Wages $ 26,500 Consumption Expenditures $36,000 Government Expenditures $18,500 Imports $20,330 Exports $18,580 Property Taxes $16,000 Sales Taxes $9,715 Retained earnings $1,310 Personal Income Taxes $2,200 Private Domestic Investment Expenditures $15,650 Interest Income $1,940 Pay Roll taxes $1,300 Transfer Payments $880 Depreciation $1,300 Net Income Made Abroad by Americans $160 Indirect Business taxes $2,520 Corporate Income Taxes $320
QUESTION 1 What impact does high inequality have on economic growth? It promotes growth by rewarding...
QUESTION 1 What impact does high inequality have on economic growth? It promotes growth by rewarding those at the top of the income hierarchy It leads to damaging recessions It has no impact on growth It adversely affects the sustainability of growth QUESTION 2 Top-income data best reflects: The power of people with the largest incomes The biggest benefit of democracy An ethical distribution of wealth The same information as the GINI index QUESTION 3 Which of the following is...
Part 1 Consider the table below. All data are for 2004 and are in billions of...
Part 1 Consider the table below. All data are for 2004 and are in billions of dollars, except the CPI, which is a percentage. Capital Consumption Allowance $ 1,435.3 Billion Consumer Spending $ 8,214.3 Billion Corporate Income Taxes $ 360.1 Billion CPI (2004) 105.0 Dividends $ 200.3 Billion Exports $ 1,173.8 Billion Factor Income Payments made to Foreign Entities $ 361.7 Billion Factor Income Receipts from Foreign Entities $ 415.4 Billion Government Spending $ 2,215.9 Billion Gross Private Domestic Investment...
1. Calculate GDP, NDP, NI, PI, and DI from the following information. All numbers are in...
1. Calculate GDP, NDP, NI, PI, and DI from the following information. All numbers are in billions of dollars. Wages $ 26,500 Consumption Expenditures $36,000 Government Expenditures $18,500 Imports $20,330 Exports $18,580 Property Taxes $16,000 Sales Taxes $9,715 Retained earnings $1,310 Personal Income Taxes $2,200 Private Domestic Investment Expenditures $15,650 Interest Income $1,940 Pay Roll taxes $1,300 Transfer Payments $880 Depreciation $1,300 Net Income Made Abroad by Americans $160 Indirect Business taxes $2,520 Corporate Income Taxes $320 2. Calculate a)...
please answer all of them i dont have enough time left, thank you 13. The ultimate...
please answer all of them i dont have enough time left, thank you 13. The ultimate purpose of fundamental stock valuation is: A. to eliminate stocks of those companies that are potential losers from the portfolio. B. to identify for purchase those companies that are fundamentally undervalued. C. to learn to identify peaks and troughs of the business cycle. D. Two of the above. 16. All of the following are disadvantages of fiscal policy, except: A. a long implementation lag....
Please google these topics and look at U. S. Bureau of Labor Statistics to get better...
Please google these topics and look at U. S. Bureau of Labor Statistics to get better understanding of these topics. 1. Calculate GDP, NDP, NI, PI, and DI from the following information. All numbers are in billions of dollars. Wages $ 26,500 Consumption Expenditures $36,000 Government Expenditures $18,500 Imports $20,330 Exports $18,580 Property Taxes $16,000 Sales Taxes $9,715 Retained earnings $1,310 Personal Income Taxes $2,200 Private Domestic Investment Expenditures $15,650 Interest Income $1,940 Pay Roll taxes $1,300 Transfer Payments $880...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT