The expenditure approach measures GDP by adding togetherSelect one:O A. wages, salaries and supplementary labour income, and other factor incomes.O B. the total expenditures of consumers, firms, net exporters, and by governments at all levels.O C.wages, salaries and supplementary labour income, other factor income, subsidies paid by the government, indirect taxes paid, andincome of nonfarm unincorporated businesses.the total expenditures of consumers and firms.compensation of employees, rental income, corporate profits, net interest, proprietors' income, indirect taxes paid, and capitalconsumption expenditures, and by subtracting subsidies paid by the government.O D.O E.

GDP refers to the monetary value of all final goods and services that are produced in the domestic…

Answered: The expenditure approach measures GDP…

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter7: Production And Growth

Section: Chapter Questions

Problem 5CQQ

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Under the expenditure categories to measure GDP, why are net exports (exports minus imports) included instead of just exports? Select one: a. GDP is a measure of all final goods and services purchased by American citizens around the world. O b. The imports include goods that were produced with intermediate goods made by American firms. O c. The values of C, I and G include spending on all final goods and services, including imports, and these imports must be subtracted out. O d. The government wants to ignore income that Americans spend on foreign-made products.
What is the GDP for a country where consumption spending is $400 billion, gross investment is $125 billion, government spending is $135 billion, exports are $200 billion, and imports are $175 billion? O $685 billion O $415 billion O $635 billion O $1 035 billion 32
Item Consumption expenditure. Investment Government expenditure on goods and services Exports of goods and services Imports of goods and services 8. Based on the data in the table, what does GDP equal? O $11,183 billion O $11.023 billion O $11.103 billion O $12.393 billion Billions of Dollars 8180 1520 1403 1290 1370
Which of the following statements is true about GDP as a measure of a country's economic healt? Select one: O a. It does not include the services produced in a country O b. It includes profits from companies' overseas operations O c. It does not include profits earned by foreign companies within the country being measured O d. It essentially takes into account the concept of GDP in relation to population O e. It measures only those goods and services made within a country
Between 2017 and 2018, the exports of the X economy decreased by $5 billion and its imports increased by $5 billion. All else equal? By how much has the GDP changed between the two years? Select one: a. The change in net exports will decrease GDP by $5 billion. O b. The change in net exports will decrease GDP by $10 billion. C. d. The change in net exports will increase GDP by $5 billion. O e. The decrease in exports is offset by the decrease in imports, so there is no change in net exports and no effect on GDP.
Which of the following description best explains the expenditures approach to calculating GDP? O consumer spending, private investment, government spending, exports minus imports O consumption, business purchase of raw material, government social security payments, and exports O investment, consumption, wages, and imports O savings, income, investment, and exports
Item Personal consumption expenditure Government expenditure on goods and services Net taxes Gross private domestic investment Imports of goods and services Exports of goods and services Millions of dollars 80 30 35 20 10 20 Use the information in the table above to calculate the value of net exports. O $10 million $30 million $0 -$10 million
The University of Chicago, a privately-owned school, is currently building a new hospital. This will be classified in U.S. GDP as because O consumption; it-will provide medical services to consumers O net exports; most construction workers are foreigners O government purchases; the construction constitutes government expenditure O investment; it increases the capital stock
Which of these items will increase the level of national income? O a. Higher gross output b. Lower net factor income from abroad O c. Higher intermediate consumption O d. Higher depreciation
When people living in America spend $10,000 to buy imported goods at the shopping mall, how does this affect U.S. GDP? O GDP decreases because we are buying foreign goods and not American goods. O GDP is not affected because the goods are not produced in America. O GDP increases by $10,000 because the consumers live in America. O GDP increases by an amount equal to the value added by the stores in the shopping mall. W ASUS 8 R
(Table) According to the table, when using the expenditure approach, GDP is Category Proprietors' income Capital consumption allowance Federal government purchases of goods and services Compensation of employees Personal consumption expenditures Billions $300 440 200 S00 950 90 60 Corporate profts Exports Gross private domestic investment Rental income State and local government purchases of goods and services Net interest Federal government deficit Imports 500 30 150 100 250 90 O $1,770 billion. O $2,020 billion. O $1,320 billion. O $1,330 billion. The government decides to give tax-exempt status to a new organization whose mission is to award college scholarships to members of the armed forces. In doing so, the government is acting in its role to promote economic growth by O ensuring a stable legal system. O enhancing physical and human capital. O ensuring a stable and secure financial system. promoting free and competitive markets.
When do net exports of goods and services increase? Net exports of goods and services increase when O A. investment increases B. government expenditure on goods and services increases C. exports of goods and services increase and imports of goods and services increase O D. exports of goods and services decrease but imports of goods and services decrease by more than exports dec ▶

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