1.There are two approaches to measuring gross domestic product (GDP), expenditures approach and income approach. Expenditures approach is comprised of consumption expenditures, investment expenditures, government expenditures plus net exports (exports minus imports). Households create income by supplying their labor to the firms. What items is the incomes approach comprised of? Hint: one item is compensation of employees.
2.Factor incomes are comprised of wages, interest, rent and capital. GDP does not measure certain items, what are they and why? What constitutes gross private domestic investment? Give examples and explain.
3.What are the uses and limitations of real GDP?. The components of GDP can be seen from the income, expenditure identity expressed as Y = C + I + G + X - M. Please give a brief description of what each letter represents. How does one calculate the GDP deflator what does it measure? Why is it important to take the effects of inflation out of GDP to reveal the rate of growth of our economic well-being?
1)Income approach measures the income received from different sources by production of goods and services.
One of them is compensation of employees ie the wages, salaries etc that employees receive in return of their services provided for production.
Next is rent from the income of ownership of land or property where the goods are being produced.
The next factor is profits generated from the private businesses.
The last factor or element is interest received from the loans given to the corporations etc.
Hence the items are interest, compensation of employees, rent and profits.
1.There are two approaches to measuring gross domestic product (GDP), expenditures approach and income approach. Expen...
7. Measuring GDP The following table shows data on personal consumption expenditures, gross private domestic investment, exports, imports, and government purchases of goods and services for the United States in 2009, as published by the Bureau of Economic Analysis. All figures are in billions of dollars. Fill in the missing cells in the table to calculate GDP by adding together the final demands of consumers, business firms, the government, and foreigners-a method of calculating GDP known as the expenditure approach....
There are two approaches to measuring a country's macroeconomic activity, which are Gross Domestic Product, and National Income. What do each of these approaches measure. List at least one advantage and disadvantage of each approach.
4. Measuring GDP The following table shows data on consumption, investments, exports, imports, and government expenditures for the United States in 2018, as published by the Bureau of Economic Analysis. All figures are in billions of dollars. Fill in the missing cells in the table to calculate GDP using the expenditure approach. Data (Billions of dollars) Consumption (C) Investment (I) Exports (X) Imports (M) Net Exports of Goods and Services Government Purchases (G) Gross Domestic Product (GDP) 13,948.5 3,650.1 2,531.3...
4. Measuring GDP The following table shows data on consumption, investments, exports, imports, and government expenditures for the United States in 2017, as published by the Bureau of Economic Analysis. All figures are in billions of dollars. Fill in the missing cells in the table to calculate GDP using the expenditure approach. Consumption (C) Investment (I) Exports (X) Imports (M) Net Exports of Goods and Services Government Purchases (G) Gross Domestic Product (GDP) Data (Billions of dollars) 13,321.4 3,368.0 2,350.2...
I 1) Gross Domestic Product (GDP) is A) the total wholesale value of all final goods and services produced by factors of production owned by citizens of a nation B) the total market value of all services produced by factors of production located within a nation's borders. C) the total market value of all goods produced within a nation's borders D) the total market value of all final goods and services produced by factors of production located within a nation's...
Part 1: Expenditures Approach to Calculating GDP (weight 25% of the assignment grade) Complete the following exercise. Visit the Bureau of Economic Analysis website at www.bea.gov. From the drop-down menu under “Data”, click on “by Economics Account”. Then click on “National”, “Gross Domestic Product, and “Full Release and Tables”. Use table 3 (Gross Domestic Product: Level and Change from Preceding Period). The left columns are nominal GDP (and its components) and the right half represents real GDP (chained 2012 dollars)...
MUST BE 2017 Data exercise #1 Part 1: Expenditures Approach to Calculating GDP (weight 25% of the assignment grade) Complete the following exercise Visit the Bureau of Economic Analysis website at www.bea.gov. From the drop-down menu under “Data”, click on “by Economics Account”. Then click on “National”, “Gross Domestic Product, and “Full Release and Tables”. Use table 3 (Gross Domestic Product: Level and Change from Preceding Period). The left columns are nominal GDP (and its components) and the right half...
11) Gross Domestic Product (GDP) is An thetotal wholisagoods and services producedby fciors oduion owned by citizens of a nation. B) the total market value of all services produced by factors of production located within a nation's borders. C) the total market value of all goods produced within a nation's borders. D) the total market value of all final goods and services produced by factors of production located within a nation's borders. 12) Intermediate goods are A) goods that are...
Gross Domestic Product (GDP) only measures the value of marketed goods and services for a country during a given period of time. Is the GDP measure underestimating or overestimating national production and total income in the economy? Why? What are the limitations of the GDP in measuring total output and national welfare? What products (services) are excluded from the GDP computation?
Gross Domestic Product Use the data chart to answer the questions below. Consumption $500 Government Expenditures $200 GNP $800 Gross Private Domestic Investment $100 Imports $100 Exports $50 Questions: 1. Using the data above, GDP is equal to __________________. 2. Using the data above, Net Exports is equal to _____________. 3. Using the data above, PCE (Personal Consumption Expenditure) is equal to _____________. 4. If the dollar amounts of the items above are the nominal amounts in year 2017, and the quantities of units...