Describe the three different approaches to measuring the amount of economic activity that occurs during a period of time and explain why they all give identical measurements
What will be an ideal response?
The approaches are the product approach, which measures the amount of output produced; the income approach, which measures the incomes received by producers of output; and the expenditure approach, which measures the amount of spending by the ultimate purchasers of output. They give identical measurements because everything that is produced is purchased by someone, so the expenditure and product approaches must be equal, and because anything that is purchased means that someone is earning income in the same amount, so the expenditure and income approaches must be equal.
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Use the aggregate expenditures model and the following values to answer the next question.AMPCIGT$9000.9$2,500$2,500$1,000Determine equilibrium real GDP for this economy.
A. $69,000 B. $59,000 C. $50,000 D. $60,000
The relationship between education and economic growth can best be summarized by saying that
A) educated people are less apt to consume goods that deplete economic resources, which encourages economic growth. B) educational expenditures tend to divert funds from productive investments, which discourages economic growth. C) educational expenditures tend to be inflationary, which discourages economic growth. D) education has benefits beyond those who receive the education, which encourages economic growth.
Due to a boom in the US, the average rate of return on investments is likely to rise causing the US dollar to
a. Appreciate b. Depreciate c. Not change in value d. None of the above
Refer to Table 24-10. How much was the cost of the basket in 2008?
a. $78.25 b. $84.75 c. $169.50 d. $456.50