The Bureau of Economic Analysis divides it's statistics on GDP into four major categories. List the categories of expenditures and define each

What will be an ideal response?


The largest category of expenditures is consumption expenditures. These are purchases by households of final goods and services. They can be divided into purchases of services, nondurable goods (goods that last less than 3 years) and durable goods (goods that last for longer than 3 years). Consumption spending does not include purchases of housing. Spending by firms on new factories, office buildings, machinery and inventories and spending by households on new houses is the second category of spending called investment spending. Government consumption and gross investment make up the third category of spending called government purchases. Government purchases include purchases by state, federal, and local governments. Finally, net export spending makes up the last category of expenditures. This is exports minus imports. Imports are purchases of foreign goods and services by the domestic economy, and exports are purchases of domestic goods and services by foreigners.

Economics

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Which of the following is true about outsourcing and labor migration:

A. Unrestricted out-sourcing and unrestricted labor migration result in the same wage outcomes in tradable goods markets (as long as there are no barriers to trade). B. Under outsourcing, pressures for wage equalization arise from shifts in labor demand curves. C. Under labor migration, pressures for wage equalization arise from shifts in labor supply curves. D. Both (a) and (c) E. Both (b) and (c) F. Both (a) and (b) G. All of the above H. None of the above

Economics

The products sold by monopolistically competitive firms

A) are differentiated. B) are homogeneous. C) can be either homogeneous or differentiated. D) are close substitutes of each other.

Economics

If the government were to increase its spending, it would expect:

A. aggregate demand to shift to the right. B. aggregate demand to shift to the left. C. aggregate supply to shift to the right. D. aggregate supply to shift to the left.

Economics

 (amounts in billions of dollars)According to the above table, Gross Domestic Product as calculated by the expenditure approach is

A. $13,384 billion. B. $13,617 billion. C. $13,278 billion. D. $14,337 billion.

Economics