The expenditure approach to measuring GDP suggests that GDP is
the total expenditure on goods and...
The expenditure approach to measuring GDP suggests that GDP is
the total expenditure on goods and services by households (C),
investors (I), government (G) and net exports (X-M). Discuss the
economic policies that are implemented by the government to boost
the aggregate demand in the Australian economy – mention and
discuss one distinct policy for each expenditure items.
From the data given below, answer the following
questions
Personal consumption expenditure
$4627
Net interest
$400...
From the data given below, answer the following
questions
Personal consumption expenditure
$4627
Net interest
$400
Exports
$716
Government Purchases of goods and services
$1175
Corporation Profits
$536
Imports
$818
Net taxes
$1260
Personal income taxes
$1300
Rental income
$28
Depreciation
$716
Gross private domestic investment
$1037
Indirect taxes
$970
Proprietor’s income
$473
Subsidies
$391
Compensation of employees (wages)
$4005
Price level (GDP deflator)
$120
a. What is the value of net export NX?
b. Is the country borrowing from...
. The difference between expenditure
and income approach to measure GDP resides in:
A) Expenditure approach...
. The difference between expenditure
and income approach to measure GDP resides in:
A) Expenditure approach address the question “Who gets income”,
while income approach “Who purchases GDP”
B) Expenditure approach counts compensation of employees, rents,
interest, proprietor’s income and corporate profit, while income
approach counts consumption, investment, government spending and
net export
C) From the spending side 70% of national income is paid in
wages and benefits, while from income side 72% consists of consumer
expenditures
D) The expenditure...
Income
(Yd)
Consumption
Expenditure
Saving
Investment
Expenditure
Government
Expenditure
Net Export
Expenditure
Aggregate
Expenditure
$8000...
Income
(Yd)
Consumption
Expenditure
Saving
Investment
Expenditure
Government
Expenditure
Net Export
Expenditure
Aggregate
Expenditure
$8000
$11,000
$2,500
$5,000
$12,500
12,000
14,000
2,500
5,000
12,500
20,000
20,000
2,500
5,000
12,500
30,000
27,500
2,500
5,000
12,500
50,000
42,500
2,500
5,000
12,500
100,000
80,000
2,500
5,000
12,500
1.Calculate savings, autonomous consumption, MPC, MPS, break
even income, and the equilibrium level of income (Y = AE = C + I +
G + NX) in the above given information.
2. Draw a graph...
Income
(Yd)
Consumption
Expenditure
Saving
Investment
Expenditure
Government
Expenditure
Net Export
Expenditure
Aggregate
Expenditure
$8000...
Income
(Yd)
Consumption
Expenditure
Saving
Investment
Expenditure
Government
Expenditure
Net Export
Expenditure
Aggregate
Expenditure
$8000
$11,000
$2,500
$5,000
$12,500
12,000
14,000
2,500
5,000
12,500
20,000
20,000
2,500
5,000
12,500
30,000
27,500
2,500
5,000
12,500
50,000
42,500
2,500
5,000
12,500
100,000
80,000
2,500
5,000
12,500
Calculate savings, MPC, MPS, break even income, and the
equilibrium level of income (Y = AE = C + I + G +NX) in the above
given information.
Draw a graph showing disposable income (Yd)...
Components of National Expenditure are given below
Defense
662
Durable goods
1,083
Exports
1,662
Federal
979...
Components of National Expenditure are given below
Defense
662
Durable goods
1,083
Exports
1,662
Federal
979
Imports
2,370
Inventory investment
-4
Nondefense
317
Nondurable goods
2,833
Nonresidential fixed investment
1,504
Residential fixed investment
630
Services
5,794
State and local
1,696
Calculate:
1. Consumption
2. Investments
3. Govt. expenditure
4. Net Exports
5. GDP