Which of the following would not increase potential GDP? a) an increase in the size of the labour force b) technological change c) a fall in the rate of unemployment d) new factories being built
Q: Classify each of the following items as a final good or service or an intermediate good or service…
A: The gross domestic product(GDP) refers to the market value of all the final commodities produced…
Q: Real GDP is not a perfect indicator of economic welfare because Select one: a. it includes the…
A: Real GDP is the value of all the goods and services produced in a country in a given period of time.…
Q: Natural rate of output is equal to the amount of real GDP when the economy is at the: a) Natural…
A: Natural rate of output is related with natural rate of employment.
Q: High employment is: The goal of maintaining a low national unemployment rate of near 0% unemployment…
A: The unemployment rate is the percentage of the total labor force that is unemployed but actively…
Q: Changes in nominal GDP are caused by price changes and changes in real GDP are caused by quantity…
A: Inflation is defined as the rise in the average price level of commodities and services in the…
Q: Double counting occurs when overstatement of GDP. included in the calculation of the GDP, leading to…
A: lets take an example of a producer A producing chocolate as his final product. now for the…
Q: Which of the following is wrong? Select one: a. In the expenditures approach to GDP we subtract…
A: a) This statement is considered true as imports are deducted in the expenditure approach as they are…
Q: Real GDP is best described as: A measure of a nation's output and employment holding wages constant.…
A: The total monetary worth of all of the finished goods and services that are produced within the…
Q: Consider how each of the following events is likely to affect real GDP. Do you think the change in…
A: a) If business and firms experience falling demand and thereby lay off workers, then it implies that…
Q: The value of transfer payments are a) part of G (in the equation Y = C + I + G +NX) b) an…
A: The value of transfer payments are- a) part of G (in the equation Y = C + I + G +NX) b) an…
Q: Which of the following will not cause an increase in equilibrium GDP? a) an increase in government…
A: According to the expenditure approach of calculating national income, Y= C+I+G+NX C is the domestic…
Q: Why is investment an important component in a country's output? what theory supports investment in…
A: To spur economic growth, a country must acquire or mobilise funds in order to invest in the…
Q: If a good produce this quarter goes into inventory then it is included in this. GDP if it is sold in…
A: Gross Domestic Product (GDP): The GDP is defined as the value of all final goods and services…
Q: Which of the following are assumed to be independent of the level of national income: (a)…
A: National income refers to the total income earned by the people of an economy in a particular period…
Q: Which of the following would cause real GDP to exceed nominal GDP? * a large increase in aggregate…
A: Gross domestic product (GDP): - GDP is the market value of all final goods and services produced in…
Q: If consumption is $8 billion, investments is $4 billion, government purchases are $2 billion,…
A: Government purchase denotes the certain expenditure on the economics services and the goods by body…
Q: Fluctuation of savings and investment rates impact on GDP of any macroeconomics. Comment with the…
A: GDP or the gross domestic product is the value of all the final goods and services which are newly…
Q: Potential GDP is equal to total production when all employment in the economy is being used to the…
A: The term "potential GDP" refers to a theoretical construct that estimates the output value.
Q: he production of goods and services valued at current prices is called real GDP. Select one: a.…
A: Gross Domestic Product (GDP) is the value of goods and services produced in the domestic territory…
Q: A decline in the interest rate is unlikely to have no effect on GDP? Agree or disagree? Why?
A: Below is the component of GDP: *Consumption *Investment *Government Expenditure *Net-Export
Q: It is expected that in the next twenty years the gross domestic product of China will become larger…
A: While comparing the GDP in both countries, China becomes larger than the United States. This means…
Q: Which of the following statements is false? a) Trend GDP shows what the path of potential GDP would…
A: Trend GDP The predicted pace of increase of a country's productive capacity is known as trend…
Q: Select all events that contribute to increase the current year's GDP in Canada? 0 The government…
A: The worth of conclusive domestic labour and products in a given year is estimated by Gross Domestic…
Q: What percentage of the U.S. gross domestic product (GDP) consists of consumer or household purchases…
A: (D)
Q: Which of the following is true about real GDP? A. It is always equal to nominal GDP B. It…
A: Answer to the question is as follows:
Q: ased on this definition, indicate which of the following transactions will be included in (that is,…
A: The variable that includes the monetary value of final goods and services that are being produced…
Q: What is the best indicator of economic well-being in the economy?
A: Answer: To find: which is the best indicator of economic well-being in the economy: 1.…
Q: For a hypothetical economy, if Nominal GDP (measured in billions of current dollars) is $5,465 and…
A: Import is the process of purchasing the products and services manufactured in another country.
Q: Determine whether the following scenarios would increase, decrease or have no impact on potential…
A: Potential GDP refers to the maximum output that an economy can generate or manufacture with the…
Q: The production of goods and services valued at current prices is called real GDP. Select one: True…
A: Production of goods and services is the process of converting inputs into output using factors of…
Q: ent expenditure includes all public consumption, investment, and transfer payment. Which of the…
A: Current expenditure of the government means the short term payments to be paid by government will…
Q: High employment is: The goal of maintaining a low national unemployment rate of near 0% unemployment…
A: Employment is a macroeconomic concept used to describe the total population of people who are of…
Q: Capital goods are goods that will be used in the future to produce more goods and services. Group of…
A: (a)Capital goods are those tangible assets that are used to produce goods for consumption at the…
Q: A. Net export spending will have a negative value when the country exports more goods than it…
A: Net export refers to the additional value of export over the imports. It can be calculated by…
Q: An increase in the labor force or capital stock is illustrated as a An increase in the expected…
A: In this movement along with the short-run aggregate supply curve (SRAS) if the Price level change…
Q: During recessions investment falls by a larger percentage than GDP. falls by about the same…
A: Any economy while moving towards the growth, registered four varied kinds of stages, namely peak,…
Q: Which of the following will not cause an increase in equilibrium GDP? a) an increase in government…
A: GDP is the value of final goods and services produced in the economy within a given period of time.
Q: Which of the following is likely to increase an economy's level of output? Emigration. Immigration.…
A: Economic growth refers to the situation when a country can generate more output than the previous…
Q: If actual GDP is $640 billion and there is a positive GDP gap of $20 billion, potential GDP is
A: Answer: Given, Actual GDP = $640 billion Positive GDP gap = $20 billion Potential GDP: It refers to…
Q: Which of the following statements is FALSE? The GDP of a country equals the value of final output…
A: GDP stands for Gross Domestic Product. GNP stands for Gross Nation Product.
Q: In recent years, people have benefited from greater amounts of leisure time. This trend: has caused…
A: Leisure time is the experience quality of free time from work. It is the time spent away from work,…
Q: Which of the following is not true? (a) National income = national expenditure. (b) Real and money…
A: The statements are: National income and national expenditure are both generated when there is…
Q: When the Japanese car maker Toyota expands one of its car factories in the United States, What is…
A: The economies around the world work, or operate with the motive of increasing their production, as…
Q: Which of the following are excluded from real GDP? A. The value of non-market services performed by…
A: The GDP refers to the production of goods and services during an accounting year. GDP does not…
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- Which of the below actions is likely to LOWER labor productivity and lower the economy's GDP (the gross domestic product and the size of the economy)? A) Hiring lots of workers with lower skills and using less machinery, computerization, tools, and equipment. B) Shifting from labor-intensive technology to more advanced technology that uses less worker-time to produce a set quantity of output. C) Greater investment in physical capital such as better and more advanced machinery and tools (physical capital). D) Better and higher education and training for workers.An economy produces capital and consumer goods. Discuss the impact on the PFF due to the following: a) The discovery of a new source of oil. b) The unemployment rate in the economy has decreased by 5%. c) Improved technology that impacts the production of capital goods.Technological Change and Unemployment: What are some examples of technological changes that have caused unemployment And what are some examples of new technologies that have created jobs How do you think you might measure the net impact of technological change on overall employment and GDP in the United States?
- Suppose that Indonesia's national production function is Y = K 05L 05, where K is the amount of land and Lis the amount of labor. The economy starts when the amount of land owned is 100 units and the number of workers is 100 units. Calculate the following indicators. a. How much output is produced? b. What are the labor wages and land rent? c. What is the share of the output received by labor? d. If a natural disaster occurs that causes the population to be reduced by half, what is the new level of national output? e. What are the new rates of labor wages and land rent? f. What share of output does the labor receive now?You looked at many economic indicators, including data regarding unemployment, GDP, housing starts, and consumption spending. Which of the following economic indicators NOT including those four would you likely see to support this analysis of the economy? The consumer confidence index is likely rising Inflation (the general price level of goods and services) is likely increasing Stock share prices are likely decreasing New businesses are likely being openedApplied Problems on Monetary Policy and Interest Rates 1. For each of the following questions, draw the Money Demand curve (MD) and Money Supply curve (MS) and label the equilibrium interest rate as i*. Also show how the MS- MD graph changes due to the given events and as a result how the equilibrium interest rate changes. (In your answer you should clearly state and show what happens to the MS and MD curves and also what happens to the interest rate).
- What does the term "GDP" stand for in economics? a) Gross Domestic Product b) General Demand Principle c) Government Debt Payment d) Growth Development PlanGross Domestic Product (GDP) tries to give us a sense of our economic well-being. Which of the following will be measured as an increase in GDP but need not reflect an increase in economic well-being? Ual The cost of new medical care that reduces infant mortality Ob) The value of the time Roland spends painting his own house c) Expenditures to clean up a major oil spill in Alaska d) Earnings of "numbers runners" in Chicago (they operate an illegal lottery) Question 2 (1 point) Suppose the economy of Sugarland produces 3 pizzas at $5 a pizza, 6 gallons of ice cream at $3 a gallon, and 5 cases of soda pop at $10 a case. The gross domestic product of Sugarland is a) $18. O b) $15. c) $50. d) $83. MacBook AirWhich of the following will likely lead to an increase in real GDP in the U.S. Group of answer choices The U.S. begins a new war in the middle east A massive hurricane destroys homes and infrastructure in the Eastern US The growing student debt burden forces American households to begin working twice as many hours each week all of the above Many people believe that GDP is not a good indicator of economics success or standard of living because Group of answer choices GDP doesn't tell us anything about the distribution of income GDP doesn't include leisure time as a good GDP does not account for "bads" like pollution all of the above
- Why is investment an important component in a country's output? what theory supports investment in GDPThe following equations describe a small economy. Figures are in millions of dollars; interest rate (i) is in percent per annum. Assume that the price level (P) is fixed. Goods Market C = Co + cYD (Private consumption) YD = Y + TR – T (Disposable income) T = To + tY (Total taxes) I = Io – bi (Private investment) G = Go, TR = TRo (Gov. Expenditure and Transfers, respectively) Y = C + I + G (Goods mkt. equilibrium condition) Money Market L = kY- hi (Demand for real balances) Ms = Mo/P (Real money supply) L = Ms (Money mkt. equilibrium condition) Endogenous Variables: C, YD T, I, Y, L, Ms and i Exogenous Variables: Co = 300, To = 80, Io = 450, Go = 300, TRo = 100, Mo = 350, P =1 Parameters: c = 0.85, t = 0.15, b = 50, k = 0.25 and h = 62.5 Policy…The overall dize of the economy is determined by a- potential GDP b-increasing human capita c-increasing physical capital d- using previous experience and gradually updating expectation