Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN: 9781305971509
Author: N. Gregory Mankiw
Publisher: Cengage Learning
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Question
Chapter 10, Problem 3PA
To determine
Why transfer payments are not included in the GDP .
Expert Solution & Answer
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Students have asked these similar questions
The government purchases component of GDP doesnot include spending on transfer payments such asSocial Security. Thinking about the definition of GDP,explain why transfer payments are excluded
What is the effect that changes in business taxes, personal income, and transfer payments have on a country’s gross domestic product (GDP).
Use the information below
Consumer spending = $200 million
Capital Consumption Allowance = $80 million
Investment spending = $55 million
Total Earnings of Citizens from abroad = $120 million
Total Earnings of non-citizens within the country = $50 million
State and local government purchases = $120 million
Federal government purchases = $80 million
Government purchases of housing units for the victims of typhoon = $200 millions
Imports = $50 million
Exports = $45 million
Income taxes = $100 million
Calculate for GDP
Calculate for GNP
Calculate for NNP
Chapter 10 Solutions
Principles of Macroeconomics (MindTap Course List)
Ch. 10.1 - Prob. 1QQCh. 10.2 - Prob. 2QQCh. 10.3 - Prob. 3QQCh. 10.4 - Prob. 4QQCh. 10.5 - Prob. 5QQCh. 10 - Prob. 1CQQCh. 10 - Prob. 2CQQCh. 10 - Prob. 3CQQCh. 10 - Prob. 4CQQCh. 10 - Prob. 5CQQ
Ch. 10 - Prob. 6CQQCh. 10 - Prob. 1QRCh. 10 - Prob. 2QRCh. 10 - Prob. 3QRCh. 10 - Prob. 4QRCh. 10 - Prob. 5QRCh. 10 - Prob. 6QRCh. 10 - Prob. 7QRCh. 10 - Prob. 8QRCh. 10 - Prob. 1PACh. 10 - Prob. 2PACh. 10 - Prob. 3PACh. 10 - Prob. 4PACh. 10 - Prob. 5PACh. 10 - Prob. 6PACh. 10 - Prob. 7PACh. 10 - Prob. 9PACh. 10 - Prob. 10PACh. 10 - Prob. 11PACh. 10 - Prob. 12PA
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- what is the difference between Gross Domestic Product and Gross National Product? Would the difference be large or small for developed country? Defend your stand and give examplesarrow_forwardPlease describe the effect that changes in business taxes, personal income, and transfer payments have on a country’s gross domestic product (GDP).arrow_forwardThe Equivalence of Expenditure and Income (in Billions of Dollars) Expenditure C: Consumer goods and services I: Investment in plants, equipment, and inventory G: Government goods and services X: Exports M: Imports GDP: Total value of output b. Gross private investment % % c. Total government purchases % d. Exports e. Imports % $14,561 Instructions: Enter your responses as a percentage rounded to one decimal place. Calculate the following as a percentage of GDP for 2019: a. Personal consumption expenditures % 3,744 3,754 2,504 (3,136) $21,427 Wages and salaries Corporate profits Proprietors' income Income Rents Interest Taxes on output and imports Depreciation Statistical discrepancy Total value of income $11,434 2,075 1,658 778 645 1,494 3,463 (120) $21,427arrow_forward
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