Question

Macroeconomics .

Problem 7 & 9 please

of the toil oduction? What problem is posed by any com- olume oer time of the market values of various total out ey is this problem resolved? LO27.1 How of the following goods are usually intermediate Which ih are usually final goods: running shoes, cotton fibers 12 t n which usu goods tbooks, coal, sunscreen lotion, lumber? LO27 walcheo economists include only final goods and services when hGP for a particular year? Why don't they include the fr the stocks and bonds bought and sold? Why don't they luf the used furniture bought and sold? LO271 aclbe awhy an economy's cutput, in essence, is also its the va LO27.1 income. examples of etch: consumer durable goods, con de three t 卜omer nondurable goods, ann services. LO272 in inverea es inc nded as part of investment inventoric, dectined by S1 billion during 2014. ss private domestic invest Why are changes spending? Suppose Pen would this affect the st How ment and gross domestic pr ment and net private de o:!" 20147 Explain. LO27.2 private domestic invest- s What is the difference bet vestment? If you were to determine net domestic pNDP) through the expen- itures approach, which oi these two measures of invest ment spending would be appropyate? Explain. LO27.2 Use the concepts of gross investment and net investment to dis- tinguish between an economy that has a rising stock of capital and one that has a falling stock of capital. Explain: "Though net investment can be positive, negative, or zero, it is impossible for gross investment to be less than zero." LO27.2 l0. Define net exports. Explain how U.S. exports and imports each Explain how net exports might be a negative amount. LO27.2 determined affects domestic production. How are net exports REVIEW QUESTIONS 1. Tina walks into Ted's sporting goods store and buys a punching hag for S100. That $100 payment counts as for Tina and a. Income; expenditure. b. Value added; multiple counting. C. Expenditure; income. d. Rents: profits. for Ted. LO27.1 . Which of the following transactions would count GDP? LO27.1 Select one or more answers from the choices shown. a. Kerry buys a new sweater to wear this winter Patricia receives a Social Security check. c Roberto gives his daughter $50 for her birthday d. Latika sells $1.000 of General Electric stock

Answer 1

As per HOMEWORKLIB RULES first question is answered

Kindly ask rest of the questions in a separate post

7.

Inventories are piled up stock of goods of businesses which have remained unsold in a particular financial year.

These inventories are included as a part of Investment spending because these are nothing but stock to be used by businesses in future, if not today.

For e.g. for a baker, stock of bread unsold today will still remain an investment because he can use it tomorrow to bake cakes.

Thus, they are counted as inveInvest spending.

A decline in inventories will reduce gross private domestic Investment by the same amount.

Since Investment is a part of GDP, a fall in Investment will thereby lead to a fall in GDP.