There are a number of measures of aggregate economic activity, such as GDP, GNP, national income, personal income, and disposable personal income. Each of these measures can be a good indicator, depending on the issue under consideration. For each of the following issues, give your reasons for selecting one of the measures just mentioned as the best indicator to use in studying the issue: a. the proportion of income households save b. the relative share of earnings going to labor versus capital c. the total output of final goods and services

There are a number of measures of aggregate economic activity, such as GDP, GNP, national income, personal income, and disposable personal income. Each of these measures can be a good indicator, depending on the issue under consideration. For each of the following issues, give your reasons for selecting one of the measures just mentioned as the best indicator to use in studying the issue: a. the proportion of income households save b. the relative share of earnings going to labor versus capital c. the total output of final goods and services

Economics For Today

10th Edition

ISBN:9781337613040

Author:Tucker

Publisher:Tucker

Chapter15: Gross Domestic Product

Section: Chapter Questions

Problem 1SQ

See similar textbooks

Similar questions

There are a number of statistics computed to measure the price level of an economy, such as the GDP deflator and the CPI. The choice of which of these measures to use depends in many cases on the specific question you are interested in. For each of the following situations, explain whether the CPI or the GDP deflator is a more appropriate measure to use and explain why the statistic is preferred. (a) The government is interested in whether increases in defense spending are affecting the price level. (50 words) (b) An economic consulting firm is investigating the impact on the aggregate price level of more computers and electronic technology used in production.
How should be the following given be treated while estimating national income (1) bonus paid to employees
In statistics, what is a qualitative variable that categorizes, describes, or names and element of a population?
At the end of the year 2022, Statistics South Africa estimated the total amount spent on consumption, government purchases, investment and net export of goods and services to arrive at the country's GDP. What measurement approach is described above? a) Value added. b) Income. c) Expenditure. d) Factor cost
Use the table below: Government spending Social Security 20 Contributions Corporate taxes 5 Personal 8 income taxes Rent Wages 50 Gross Private Domestic Investment 54 Consumption 250 expenditures 40 Profit Indirect business taxes Imports Exports 28 transfer payments 10 5 3 Interest 5 Depreciation 10 Government 8
To estimate GDP using an expidenture approach, what are the expidenture components that would be needed to perform the estimation ? Of these, which is the largest?
is Percentage of Households Percentage of income From the graph above, we can say that the bottom 60% of the population in Country B gets aggregate income in the economy, while the top 20 % of the population in Country A gets income in the economy % of the % of the aggregate
Consider the following national income model : Y = C + I + Go C = 102 + 0.6Y 3.3000000000000003I = 253 + 0.21Y Where Go = 184 (i) Identify the exogenous variable/s. if there are more than one variable, separate each variable with a comma Convert this system of equations in matrix form. (ii) What is the determinant of the coefficient matrix? (Give your answer to 'three' decimal places, if possible) (Note: you can use either inversion or Cramer's rule to find the values of Y, C, and I.) (iii) What is the equilibrium value of Y? (Give your answer to 'three' decimal places, if possible) (iv) What is the equilibrium value of C? (Give your answer to 'three' decimal places, if possible) (v) What is the equilibrium value of I? (Give your answer to 'three' decimal places, if possible)
You are employed by the state bureau of economic development. There is a demand for a leading economic index to review past economic activity and to forecast future economic trends in the state. You decide that several key factors should be included in the index: number of new businesses started during the year, number of business failures, state income tax receipts, college enrollment, and the state sales tax receipts. Here are the data for 2000 and 2018. 2000 2018 New businesses 1,240 1,325 Business failures 600 496 State income tax receipts ($ millions) 185.2 220.8 College student enrollment 242,299 291,291 State sales tax ($ millions) 55.1 57.4 The weights you assign are: new businesses 15%, business failures 10%, income tax 42%, enrollment 13% and sales tax 20%. b. Compute the leading economic indicator for 2018. (Round your answer to 2 decimal places.) c. Interpret the indexes. (Round your answer to 2 decimal places.) Economic activity has (increased or decreased) _____%…
Solve for mixed strat
Provide a trend analysis for income taxes ratios. What does it mean when a company's income taxes ratios increase over the years?
The Global Machine Manufacturing Company, Q5. manufacturing Heavy Machines in the Sultanate of Oman. The company has decided to buy a new advance machine to produce the different equipment's. The decision will rest partly on the anticipate sales of machines in the coming months. The actual numbers of machines sold during the past years are as follows: Year Number of machines (Actual) 2014 1000 |2015|1200 2016 1400 2017 1550 2018 1725 2019|1860 2020 2025 a. Forecast the sales for the year of 2021 using a 3-Year moving average method. b. Forecast the sales for the year of 2021 using a 3-Year weighted moving average, with weights of 5, 3 and 2. Using 5 for the most recent Year. c. Compute the forecast for the year 2021 using exponential smoothing with a = 0.5. (Assume the forecast for 2014 was 900 Machines) Compute the MAD based on calculation in c. с. d.