The graph shows an economy that has experienced a fall in total spending. What is the long run output level in this economy? (Answer in trillions of $.
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The graph shows an economy that has experienced a fall in total spending. What is the long run output level in this economy? (Answer in trillions of $.) $_____
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- United Kingdom Kenya Price per Value of Value of unit (GBP) output Оuаntity Price per Quantity unit (KSh) output (GBP) (KSh) 5000 per 75 650,000 Equipment (millions of 500 unit units) Food 500 10 per kg 125 750 (millions of kg) Total GDP (local currency) a. If equipment is fully tradable, so that the price in Kenyan shillings (KSh) equals the price in pounds times the market exchange rate, what is the market exchange rate? b. Based on its relative price, does it appear that food is tradable? Is it more or less expensive in Kenya, compared to the UK? c. Fill in the table above (ignoring cells with "-"). What is the UK's total GDP in GBP? What is Kenya's total GDP in KSh? d. What is Kenya's GDP in GBP at market exchange rates? e. Following the calculations on pp 28-29 of ED, what is Kenya's GDP in pounds calculated by using UK prices for each individual product and applying that price to Kenya's quantities (that is, using purchasing power parity [PPP])? f. Is the value you calculated in…(05.02 HC) Review the chart to answer the question that follows. Total Population GDP Country A 5,000 10,000 Country B 10,000 15,000 Country C 2,000 8,000 Country D 1,000 5,000 Which additional type of data would be most important for comparing the standard of living of these countries? Share of budget set aside for defense Percent of territory that is water Number of airports Literacy rate(b) The table below shows GDP at current prices (money GDP) and an appropriate price index (the implicit price deflator) for a group of selected years. Compute GDP at constant 2014-15 prices (real GDP). Also calculate real GDP growth. GDP at current prices Implicit price deflator GDP at constant 2014-15 prices Economic Growth Year ($ million) (2014-15 = 100) Calculation ($ million) 2013-14 783514 97.2 2014–15 838011 100 2015-16 892999 104.1 2016-17 967721 108.4 2017-18 984450 110.1
- -What was the real GDP of Nigeria in 2019 and 2020 -Calculate per capita income in 202016 - Which of the following is the production value of a Turkish artisan who produces bread in Karabük? a) GDP B) net national income C) GDP D) GDP vs. GNP TO) Added ValueINDICATOR Population (million) GDP per capita (USD) GDP (USD bn) Economic 2014 2018 2015 1.4 2016 1.4 2017 1.4 1.4 1.4 20,361 18,484 16,414 16,524 17,370 27.6 -1.0 25.1 1.8 22.4 -6.3 22.6 -2.3 23.9 -0.2 Growth (GDP, annual variation in %) Unemployment| 3.3 Rate Fiscal Balance (% of GDP) Public Debt (% of GDP) 3.4 4.0 4.8 4.9 -2.6 -1.7 -5.3 -8.9 -3.6 45.2 48.0 59.1 62.9 61.6 Inflation Rate 5.7 4.7 3.1 1.9 1.0 (CPI, annual variation in %) Exchange Rate (vs USD, aop) Exports (USD billion) Imports (USD billion) International 6.39 6.36 6.63 6.74 6.75 15.0 11.4 8.3 9.4 10.5 7.9 7.5 7.1 6.5 6.7 11.5 10.0 9.5 8.5 8.1 Reserves |(USD) iii. Discuss two policy recommendations that the authorities can use to rectify the fiscal balance.
- 3) Answer the following questions about country A. a) What was GDP equal? b) What was the value of total production equal to? c) What approach did you use to make this calculation? Items RM (million) Agriculture, Forestry & Fishing 25874 Construction 89756 Mining & Quarrying 12345 Electricity, Gas & Water 96325 Manufacturing 70002 Government Services 78953 Wholesale, Retail, Hotel & Restaurant 258 Finance, Insurance & Real Estate 456 Transport, Storage & Communication 999 Other Services 451 Factor Income Paid Abroad 452 Indirect Taxes 200 Factor Income Received From Abroad 500 Subsidies - 85 Depreciation 891The AD-AS graph below illustrates the U.S. economy at the end of 2021. Actual real GDP was $18.4 trillion, and full employment output was $19.3 trillion. On the graph, use the drag tool to illustrate the impact of the 8 million $600 payments by shifting the aggregate demand line or short-run aggregate supply line the in the appropriate direction.INDICATOR Population (million) GDP per capita (USD) GDP (USD bn) | 27.6 2014 1.4 2015 1.4 2016 1.4 2017 1.4 2018 1.4 20,361 18,484 16,414 16,524 17,370 25.1 1.8 22.4 -6.3 22.6 -2.3 23.9 -0.2 Economic -1.0 Growth (GDP, annual variation in %) Unemployment| 3.3 Rate Fiscal Balance (% of GDP) Public Debt (% | 45.2 of GDP) 3.4 4.0 4.8 4.9 -2.6 -1.7 -5.3 -8.9 -3.6 48.0 59.1 62.9 61.6 Inflation Rate 5.7 4.7 3.1 1.9 1.0 (CPI, annual variation in %) Exchange Rate (vs USD, aop) Exports (USD billion) Imports (USD billion) International 6.39 6.36 6.63 6.74 6.75 15.0 11.4 8.3 9.4 10.5 7.9 7.5 7.1 6.5 6.7 11.5 10.0 9.5 8.5 8.1 Reserves (USD). iii. Identify two indicators of wellbeing that are not listed in the table above which can be used as superior measures of the standard of living. iv. Calculate the trade balance for Trinidad and Tobago for the period (2014 – 2018). v. Assess the impact of a negative trade balance on a country's external position.
- The following transactions took place in Ecoland in 2018: Trillions of 2014 dollars Government purchases 400 Taxes 360 Firms’ profits 300 Investment 400 Consumption expenditure 1000 Wages paid to labor 1400 Exports 300 Government transfer payments 150 Imports 350 (a). Calculate Ecoland’s real GDP in 2018, i.e., GDP measured in 2014 $. (b) How much do households save in Ecoland? Is it enough to finance domestic investment? (c) Does the government have a balanced budget? If not, what is the surplus or deficit? (d) If Ecoland’s nominal GDP in 2018 is $1900 trillion, how much inflation has Ecoland experienced since 2014?Suppose GDP in this country is $690 million. Enter the amount for consumption. Value National Income Account (Millions of dollars) Government Purchases (G) 150 Taxes minus Transfer Payments (T) 210 Consumption (C) Investment (I) 165INDICATOR Population (million) GDP per capita (USD) GDP (USD bn) | 27.6 Economic 2014 1.4 2015 2016 1.4 2017 1.4 2018 1.4 1.4 20,361 18,484 16,414 16,524 17,370 25.1 1.8 22.4 -6.3 22.6 -2.3 23.9 -0.2 -1.0 Growth (GDP, annual variation in %) Unemployment 3.3 Rate Fiscal Balance (% of GDP) Public Debt (% | 45.2 of GDP) Inflation Rate (CPI, annual variation in %) Exchange Rate (vs USD, aop) Exports (USD billion) Imports (USD billion) 3.4 4.0 4.8 4.9 -2.6 -1.7 -5.3 -8.9 -3.6 48.0 59.1 62.9 61.6 5.7 4.7 3.1 1.9 1.0 6.39 6.36 6.63 6.74 6.75 15.0 11.4 8.3 9.4 10.5 7.9 7.5 7.1 6.5 6.7 International Reserves 11.5 10.0 9.5 8.5 8.1 JUSD). i. Using four relevant macroeconomic variables assess the performance of Trinidad and Tobago's economy for the period (2014 -2018). ii. Discuss any two limitations of national income statistics as measures of economic well-being for a country iii. Identify two indicators of wellbeing that are not listed in the table above which can be used as superior measures…