Why do economists include only final goods in measuring GDP for a particular year? Why don’t they include the value of stocks and bonds sold? Why don’t they include the value of used furniture bought and sold?
Why do economists include only final goods in measuring GDP for a particular year? Why don’t they include the value of stocks and bonds sold? Why don’t they include the value of used furniture bought and sold?
Chapter5: An Introduction To Macroeconomics
Section: Chapter Questions
Problem 3TY
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Answer the following questions. Make sure to number your answers when you upload your response.
- Why do economists include only final goods in measuring
GDP for a particular year? Why don’t they include the value of stocks and bonds sold? Why don’t they include the value of used furniture bought and sold?
- Which of the following are included in this year’s GDP? Explain your answer in each
- Interest on an AT&T corporate bond.
b. Social security payments received by a retired factory worker.
- The unpaid services of a family member in painting the family home.
- The income of a dentist.
e. The money received by Smith when she sells her economics textbook to a book buyer.
- The monthly allowance a college student receives from
- Rent received on a two-bedroom apartment.
- The money received by Josh when he resells his current-year-model Honda automobile to Kim.
- The publication of a college textbook.
j. A 2-hour decrease in the length of the workweek.
- The purchase of an AT&T corporate bond.
- A $2 billion increase in business inventories.
- The purchase of 100 shares of GM common stock.
- The purchase of an insurance policy.
3. Below is a list of domestic output and national income figures for a given year. All figures are in billions. The questions that follow ask you to determine the major national income measures by both the expenditure and income methods. The results you obtain with the different methods should be the same
Personal consumption expenditures Net foreign factor income Transfer payments Rents Statistical discrepancy Consumption of fixed capital ( Interest Proprietors’ income Net exports Dividends Compensation of employees Taxes on production and imports Undistributed corporate profits Personal taxes Corporate income taxes Corporate profits Government purchases Net private domestic investment Personal saving |
$245 4 12 14 8 27 20 13 33 11 16 223 18 21 26 19 56 72 33 20 |
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