Using the expenditure approach, calculate the GDP for the United States during a one year period with hypothetical numbers. Be sure that the numbers for each category reflect a realistic proportion.
What will be an ideal response?
Examples will vary, but should show a thorough understanding of how to calculate
GDP using the expenditure approach and the realistic proportions for each category.
For example, in a given year, let’ s say the United States had a total consumption (C) of
$500 million; a total investment (I) of $47 million; government purchasing (G) of $205
million; and net export of -$2 million ($100 million export (X) minus $102 million imports
(M)). The GDP for that year would be $750 million ($500 million (C) + $47 million (I) +
$205 million (G) + ($100 million (X) – $102 million (M)).
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Among its duties, the Federal Reserve ________.
A. collects taxes from the commercial banks B. is responsible for regulating and supervising the banks C. uses loans from the commercial banks to increase the money supply D. provides deposit insurance for commercial bank customers
The opportunity cost of producing a good rises only slightly as the quantity produced increases. This good has
A) an inelastic demand. B) an elastic demand. C) an elastic supply. D) an inelastic supply. E) a perfectly elastic supply.
Select the correct statement
a. Qualitative forecasts give the direction of change. b. Quantitative forecasts give the exact amount or exact percentage change. c. Diffusion forecasts use the proportion of the forecasts that are positive to forecast up or down. d. Surveys are a form of qualitative forecasting. e. all of the above are correct.
Why should a firm not produce more than the rate of output at which marginal revenue equals marginal cost?
What will be an ideal response?