Suppose gross domestic product (GDP) is $5 billion, government transfer payments are $1.5 billion, indirect business taxes and transfers are $0.25 billion, and depreciation is $0.5 billion. Then national income equals Select one: a. $2.75 billion. b. $5 billion. c. $3.25 billion. d. $4.25 billion.
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- Suppose gross domestic product (GDP) is $5 billion, government transfer payments are $1.5 billion, indirect business taxes and transfers are $0.25 billion, and depreciation is $0.5 billion. Then national income equals Select one: a. $2.75 billion. b. $5 billion. c. $3.25 billion. d. $4.25 billion. CLEAR MY CHOICESuppose that in the country of Economia: Net Investment = $20 billion, Depreciation = $70b, Net Exports = $30b, Taxes = $90b, Government Expenditure = $60b, Imports = $70b, Consumption = $120b. What does GDP equal in Economia? Select one: a. $300 billion b. $270 billion c. $250 billion d. $230 billion e. $210 billion3. The national consumption function of a country is C = 400 + 0.8Yd. The government only provides transfer payments of 100, without ever collecting taxes from its citizens. If the national income of the country is 1000. Determine: a. Consumption and savings of the people of the country. b. Disposable income for the people of the country. Please solve subparts a and b thank u
- 1. Suppose GDP is $8 trillion, taxes are $1.5 trillion, private saving is $0.5 trillion, and public saving is $0.2 trillion. Assuming this economy is closed, calculate consumption, government purchases, national saving, and investment.Assume the following: Government purchases is $120 billion, Depreciation $40 billion, Consumption $400 billion, Business Investment $60 billion, Exports $100 billion, Imports $120 billion, Income receipts from rest of the world $10 billion, and Income payments to rest of the world $8 billion i. Required: a. What is the value of GDP? b. What is the value of net exports? c. What is the value of NNP?Need help with this. Thank you 1. Explain why the Government Spending (G) component of GDP falls short of actual (total) government outlays or expenditures. - If Depreciation = $479 Gross private domestic Investment (I) = $716 Government spending = $924 Imports = $547 Personal Consumption Expenditures = $2,966 Exports = $427 a. How big is the GDP? b. How big is National Income?
- 1. From the table below, gross domestic product equals: a. $1,110 b. $1,265 c. $1,470 d. $1,695 Personal Income Taxes $130 Government Purchases of Goods and $150 Services Gross Private Domestic Investment $230 Net Interest $75 Sales Taxes Net Exports of Goods and Services Personal Consumption Expenditures Depreciation $35 $55 $725 $175If consumption expenditures are $1800 million, gross investment is $450 million, imports are $350 million, exports are $180 million, government expenditure on goods and services is $120 million, and government transfer payments are $180 million and net taxes are $250 million; a) Calculate the GDP. b) Is there budget deficit or surplus? Calculate. c) How much is the private (household) saving? d) How much is the disposable income?44. Which component of GDP will increase if disposable income increases? a. Government spending b. Investments c. Consumption d. Net exports
- #42. Suppose a closed economy had public saving of −$6 trillion and private saving of $15 trillion. What are national saving and investment for this country? a $21 trillion, $9 trillion b $9 trillion, $21 trillion c $9 trillion, $9 trillion d $21 trillion, $21 trillion20. Which of the following represents the measurement of GDP as the sum of consumption expenditures, investment, government purchases of goods and services, and net exports? a.Wealth approach b.Income approach c.Expenditure approach d.Saving approachIf consumption expenditures are $1800 million, gross investment is $450 million, imports are $350 million, exports are $180 million, government expenditure on goods and services is $120 million, and government transfer payments are $180 million and net taxes are $250 million; a) Calculate the GDP. b) Is there budget deficit or surplus? Calculate. c) How much is the private (household) saving?