Clearly illustrate the "Circular Flow Diagram" and explain each component of the GDP. If the government expenditure is $20 billion, aggregate income is $100 billion, consumption expenditure is $67 billion, investment is $21 billion, exports of goods and services is $30 billion, what is the value of aggregate expenditure and imports of goods and services?
Homework Answers
Answer :-
The circular flow model is a representation of flow of income and product is the flow of good and services among different sectors of the economy balanced by the flow of money payments made in exchange for those goods and services.
Circular flow model can be viewed from two different angles
1) In the form of goods and services called real flow
2) In the form of money, called monetory flow.
Circular flow model can be viewed from two different angles
1) In the form of goods and services called real flow
2) In the form of money, called monetory flow.
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Clearly illustrate the "Circular Flow Diagram" and explain each component of the GDP. If the government...
2. The circular flow of income and expenditure The income and expenditure approaches to measuring a...
2. The circular flow of income and expenditure The income and expenditure approaches to measuring a nation's GDP can be combined using the circular flow model. Categorize each flow in the following table as part of either aggregate demand or national income. Flow Aggregate Demand National Income Net taxes (NT) O Investment spending (1) Consumption (C) Government purchases (G) OOO Net exports (X - IM) Disposable income (DI) 0 While national income and domestic product must be equal, income must...
19. Which of the following is included in government expenditures when measuring GDP? A) Social Security...
19. Which of the following is included in government expenditures when measuring GDP? A) Social Security payments B) unemployment compensation payments C) pension payment made to past presidents D) the current president's salary 20. Transfer payments A) are included in the government expenditure category in gross domestic product. B) refer to all payments made to households by governments. C) refer to payments made by the government that are not made to purchase a good or service. D) are made by...
Consumption: ?? = 4 + 0.5(? − ?) Investment: ?? = 4 + 0.2? Government expenditure:...
Consumption: ?? = 4 + 0.5(? − ?) Investment: ?? = 4 + 0.2? Government expenditure: ? = 30 Tax revenue: T = 0.2? Exports: ? = 7 Imports: ? = 0.02 ? where Cd is consumption on domestically produced goods (remember: total consumption, C=Cd +M), Y is domestic output, G is government expenditure, M is imports, IP is planned investment spending, X is exports, and T is tax revenue. (i) Derive the equation for planned aggregate expenditure (PAE) on...
What is consumption in this economy? Please explain; the answer is A. GDP Transfer payment Net...
What is consumption in this economy? Please explain; the answer
is A.
GDP Transfer payment Net foreign factor income$200 earned Consumption of fixed capital Interest Exports of goods and services Government purchases Net private domestic investment $1000 $30 $100 $20 $20 $20 $10 Imports of goods and $5 services Table-5 6. Table-5: What is consumption in this economy? A $855 В S995 С S100 D $110
r components of aggregate expenditure and GDP for the following economy using data from the table...
r components of aggregate expenditure and GDP for the following economy using data from the table below. Instructions: Enter your responses as whole numbers. GDP Data Consumption expenditures $600 Exports $75 Government purchases of goods and services $200 Construction of new homes and apartments $100 Sales of existing homes and apartments $200 Imports $50 Beginning-of-year inventory stocks $100 End-of-year inventory stocks $125 Business fixed investment $100 Government payments to retirees $100 Household purchases of durable goods $150 Consumption expenditures: $...
1. The expanded circular-flow diagram Aa Aa The diagram below shows an expansive circular-flow diagram for the U.S. eco...
1. The expanded circular-flow diagram Aa Aa The diagram below shows an expansive circular-flow diagram for the U.S. economy, with arrows pointing in the direction that money flows. To facilitate reference, letter labels have been placed on certain arrows of the diagram Government purchases of goods and services Government borrowing Government Taxes Government transfers Private savings Households Wages, profit, interest, Consumer spending rent Markets for goods and services Factor markets Financial markets Gross Wages, profit, interest, rent domestic Borrowing and...
1. 2. During 2013, a country reported that its real GDP increased by $3.0 billion. If...
1.
2.
During 2013, a country reported that its real GDP increased by $3.0 billion. If the slope of its aggregate planned expenditure curve is 0.9, then which of the following might have led to the increase in real GDP? Exports increased by $0.3 billion. Exports decreased by $0.3 billion. Investment decreased by $0.3 billion. o Imports increased by $0.3 billion. Government expenditure on goods and services increased by $3 billion. During 2013, exports increase from $1.0 trillion to $1.5...
The table shows real? GDP, Y?, consumption? expenditure, C?, ?investment, I?, government expenditure on goods and?...
The table shows real? GDP,
Y?,
consumption? expenditure,
C?,
?investment,
I?,
government expenditure on goods and? services,
G?,
?exports,
X?,
?imports,
M?,
and aggregate planned? expenditure, and
AE?,
in millions of dollars. Taxes are constant.
If investment crashes to? $0.55 trillion but nothing else?
changes, what is equilibrium expenditure and
what is the? multiplier?
Homework: Chapter 14 Save Score: 0 of 1 pt 17 of 25 (19 complete) HW Score: 76%, 19 of 25 pts Chapter Problem5 Question Help *...
QUESTION 24 Exhibit 11-1 GDP - Expenditure Approach Category Percent of GDP Amount (billions of current...
QUESTION 24 Exhibit 11-1 GDP - Expenditure Approach Category Percent of GDP Amount (billions of current dollars) 70% 20% Consumption (C) Investment (1) Government purchases (G) Net exports of goods and services (X - M) Gross domestic product 15% $9,000 100% Refer to Exhibit 11-1. What conclusion regarding exports and imports can be arrived at looking at the data provided? a. Exports exceeded imports. b. Exports equaled imports. c. Imports exceeded exports. d. Data insufficient to arrive at any conclusion.
Suppose the following are national accounts data for a given year for a fictitious country: $B AUD Consumption of fixed...
Suppose the following are national accounts data for a given year for a fictitious country: $B AUD Consumption of fixed capital ………………………………………………. 320 Gross private fixed capital formation……………………………………….. 785 Government consumption expenditure………………………………………. 585 Government investment expenditure………………………………………… 210 Imports of goods and services………………………………………………...565 Exports of goods and services………………………………………………...690 Household consumption expenditure………………………………………..3115 Net property and other income paid overseas………………………………….34 Returns to labour…………………………………………………………….2651 Firm profits………………………………………………………………….1687 Other factor rentals……………………………………………………………482 _____________________________________________________________________ (j) Suppose that tax revenues are $17 billion for the fiscal year, then what...
2. The circular flow of income and expenditure The income and expenditure approaches to measuring a nation's GDP can be combined using the circular flow model. Categorize each flow in the following table as part of either aggregate demand or national income. Flow Aggregate Demand National Income Net taxes (NT) O Investment spending (1) Consumption (C) Government purchases (G) OOO Net exports (X - IM) Disposable income (DI) 0 While national income and domestic product must be equal, income must...
19. Which of the following is included in government expenditures when measuring GDP? A) Social Security payments B) unemployment compensation payments C) pension payment made to past presidents D) the current president's salary 20. Transfer payments A) are included in the government expenditure category in gross domestic product. B) refer to all payments made to households by governments. C) refer to payments made by the government that are not made to purchase a good or service. D) are made by...
What is consumption in this economy? Please explain; the answer
is A.
GDP Transfer payment Net foreign factor income$200 earned Consumption of fixed capital Interest Exports of goods and services Government purchases Net private domestic investment $1000 $30 $100 $20 $20 $20 $10 Imports of goods and $5 services Table-5 6. Table-5: What is consumption in this economy? A $855 В S995 С S100 D $110
1. The expanded circular-flow diagram Aa Aa The diagram below shows an expansive circular-flow diagram for the U.S. economy, with arrows pointing in the direction that money flows. To facilitate reference, letter labels have been placed on certain arrows of the diagram Government purchases of goods and services Government borrowing Government Taxes Government transfers Private savings Households Wages, profit, interest, Consumer spending rent Markets for goods and services Factor markets Financial markets Gross Wages, profit, interest, rent domestic Borrowing and...
1.
2.
During 2013, a country reported that its real GDP increased by $3.0 billion. If the slope of its aggregate planned expenditure curve is 0.9, then which of the following might have led to the increase in real GDP? Exports increased by $0.3 billion. Exports decreased by $0.3 billion. Investment decreased by $0.3 billion. o Imports increased by $0.3 billion. Government expenditure on goods and services increased by $3 billion. During 2013, exports increase from $1.0 trillion to $1.5...
The table shows real? GDP,
Y?,
consumption? expenditure,
C?,
?investment,
I?,
government expenditure on goods and? services,
G?,
?exports,
X?,
?imports,
M?,
and aggregate planned? expenditure, and
AE?,
in millions of dollars. Taxes are constant.
If investment crashes to? $0.55 trillion but nothing else?
changes, what is equilibrium expenditure and
what is the? multiplier?
Homework: Chapter 14 Save Score: 0 of 1 pt 17 of 25 (19 complete) HW Score: 76%, 19 of 25 pts Chapter Problem5 Question Help *...
QUESTION 24 Exhibit 11-1 GDP - Expenditure Approach Category Percent of GDP Amount (billions of current dollars) 70% 20% Consumption (C) Investment (1) Government purchases (G) Net exports of goods and services (X - M) Gross domestic product 15% $9,000 100% Refer to Exhibit 11-1. What conclusion regarding exports and imports can be arrived at looking at the data provided? a. Exports exceeded imports. b. Exports equaled imports. c. Imports exceeded exports. d. Data insufficient to arrive at any conclusion.
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