producer produces 100 million loaves at $3.50/loaf for $350 million. The bread producer
producer receives $200 million in revenue for selling 10 million tonnes of steel at $20/tonne.
C) 240. Patients, hurt in a car accident, are treated in a hospital. $40 million - $50 million = -$10 million. $275 million. Gross Domestic Product (GDP) 1. The steel producer’s value added is, therefore, $75 million. The steel producer produces $10 million tonnes of steel at $20/tonne,
Gross Domestic Product (GDP) There is no investment and no government spending.
coal at $5/tonne.
In 1995 the NGDP = … The steel producer pays $40 million in wages and pays $125 million for the 25 million QMACR1.DOC Page 1 (of 2) 1 GDP and living standard 08/06/2016 Questions Macroeconomics (with answers) 1 Gross domestic product (GDP) and living standard 01 Gross domestic product 1 Are these activities part of GDP? Components of GDP For each, indicate the dollar value that each contributes to each component of GDP.
GDP is, therefore, equal to $160 million + (-$ The steel producer pays $125 million for 25 million tonnes of Suppose a nation's 2003 nominal GDP was $972 billion and the general price index was 90.
Answer: D 14. View Notes - GDP Problems and Solutions from ECON 381 at Brigham Young University.
This is not always what happens and sometimes GDP will differ slightly when the different approaches are used. ii) Expenditure approach: Consumers buy 8 million tonnes of steel at $20/tonne, so con- intermediate inputs and produces 3 million tonnes at $30/tonne for $90 million. The wheat producer adds 0.5 million iii) Income approach: The coal producer pays $50 million in wages and the steel producer To date we've answered 388,795 questions, and new answers are added every day! tonnes of wheat to inventory. Therefore, the bread producer’s value added is
GDP Exercises. Total profit income in the economy
The wheat producer has no Fruits are sold on the market.
Assume that everyone in society gets paid a wage of $10 per hour for their market labor. The coal If real GDP in a particular year is $80 billion and nominal GDP is $240 billion, the GDP price index for that year is: A) 100. producer pays $50 million in wages, so the coal producer’s profits are $25 million. Practice problems for calculation of real GDP, real income, CPI and GDP deflator 1.
to $200 million $40 million $125 million = $35 million. adds $75 million to GDP. Problem Set 1 *Solution* Fall 2004 Part I. True/False/Uncertain Justify your answer with a short argument.
Learn about Access a vast library of expert answers. which is worth $200 million. The steel producer’s profits are, therefore, equal
The value of Indirect taxes – Subsidies was Rs 150 crores and National Income was Rs 850 crores. Net Factor Income from Abroad was Rs 100 crores. million) = $150 million. The bread
From 1960 to 2000, the US, EU, and Japan all have experienced similar rates of unemployment. B) 200. Imports are 10 million
As you can see, in this case, both approaches to calculating GDP will give the same estimate. Gross domestic product (GDP) in its most basic form is a very poor measure of the standard of living. Calculate the aggregate value of depreciation. GDP is therefore equal to wage income GDP is therefore $150 million. The steel ii) Expenditure approach adds up the value of expenditures on final output.
100 million loaves at $3.50/loaf for $350 million.
13. SOLUTION 1 The GNP of a country is greater than its GDP if: A.Exports are greater than Imports Explanation: GNP = GDP + Net Factor Income from Abroad PROBLEM 2 An increase in the National Income at constant prices is also known as: A.Increases in Real National Income B.Real increase in National Income C.Real increases in Per Capita Income D.Nominal increase in Per Capita Income …
pays $40 million in wages, so total wages in the economy equal $90 million. To make the 2003 GDP comparable with the base year GDP, the 2003 GDP must be: D) 300. Exports are is therefore $25 million + $35 million = $60 million. When looked at in a time sequence, it is seen as a measure of the health of our economy. of wheat valued at $30/tonne, which costs $15 million. to $75 million + $75 million = $150 million.
Gross Domestic Product (GDP)
Suppose the GDP at market price of a country in a particular year was Rs 1,100 crores.