Macroeconomics Assignment. By XYZ Institution Name 1 | P a g e 1. The full employment level of output is where the labor market and the output market are in. 1. QUESTION BANK. MACROECONOMICS. Prepared by the faculties of the Department of. Economics, (Evening). 08/06/ Questions Macroeconomics (with answers). 1 Gross domestic product (GDP) and living standard. 01 Gross domestic product 1. Are these activities.
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Explain your answer in each case. What amount would these two transactions add to personal consumption expenditures and thus to GDP during the year?
This approach adds personal consumption expenditures, gross investment, government purchases, and net exports. This final sale price includes the cost of the bulbs purchased by the Internet retailer. Economic indicators and the business cycle Business cycles: Housing, for example, is given a high weight because of its importance in the average budget.
Income and Taxes Approach: Financial sector Interest rates and the time value of money: The questions that follow ask you to determine the major national income measures by both the expenditures and the income approaches.
Macroeconomics numericals Term paper Example – words –
The publication and sale of a new college textbook. National income and price determination Fiscal policy: Examples are peanut butter, clothes, etc Used furniture was produced in some previous year; it was counted ,acroeconomics GDP then.
This value is not included in GDP because such sales and purchases simply transfer the ownership of existing assets; such sales and purchases are not themselves economic investment and thus should not be counted as production of final goods and services. Keynesian economics and its critiques: What were bumericals amounts of real GDP in and ? Financial sector The Market for loanable funds: This process fixes quantity in the base year and varies prices CPI.
Adding together all the results of the price times quantity figures leads to the aggregate figure showing the total value of all the final goods and services produced in the economy. When gross investment equals depreciation, net investment is zero and production capacity is said to be static; the economy ends the year with the same amount of physical capital.
Comparing market values over time has the disadvantage that prices change. Merely the transfer of ownership of existing financial assets. The dollar value of final goods includes the dollar value of intermediate goods.
Provide three examples of each: Thus, the price of housing increasing by numericqls percent has a much greater effect on the price index used to compare prices from one year to the next, than would the price of a book of matches increasing by percent. Suppose that in the total output in a single-good economy was buckets of chicken. The person purchasing the watch is typically the individual who will use the watch.
Economic indicators and the business cycle Unemployment: Determine the GDP price index forusing as the base year. We would do this for all goods and add up each value.
This is an increase of Since oranges numericalx computers have different values, the quantities of each commodity are multiplied by their values or prices. The results you obtain with the different methods should be the same. By what percentage did the price level, as measured by this index, rise between and ?
Basic economics concepts Comparative advantage and the gains from trade: Indicate in each calculation whether you are inflating or deflating macroeconmoics nominal GDP data.
Long-run consequences of stabilization policies Economic growth: It is a new good produced for final consumption. If the production of macroeconkmics increases by percent and that of computers by 10 percent, it does not make any sense to add the percent to the 10 percent, then divide by 2 to get the average and say total macroeconommics has increased by 55 percent.
The following table shows nominal GDP and an appropriate price index for a group of selected years. Running shoes are usually a final good. Economic models Introduction to macroeconomics. Why is one more reliable than the other for comparing changes in the standard of living over a series of years?
What was its GDP in year 2?
National income accounting allows us to assess the health of an economy and formulate policies to maintain and improve that health. Sometimes it is easier to use a table to attack this type of problem.
Skip to main content. Why do national income accountants compare the market value of the total outputs in various years rather than actual physical volumes of production? The balance of payments: To the right is a list of domestic output and national income figures for a certain year. Payment for a final service. Services are the work done by lawyers, accountants, etc A transfer payment from taxpayers for which no service is rendered in this year.
If intermediate goods were counted, then multiple counting would occur.