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The following is a list of figures for a given year in billions of dollars.Using this data, compute: (a) GDP by the Expenditure Method; (b) GDP by the Income Method; (c) Net exports; and (d) Net Investment. The following is a list of figures for a given year in billions of dollars.Using this data, compute: (a) GDP by the Expenditure Method; (b) GDP by the Income Method; (c) Net exports; and (d) Net Investment.

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(a) GDP by the Expenditure Method = $500...

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The following table shows the price of a specific stereo receiver for a five-year period.Using Year 3 as the base year, calculate the price index for each year. The following table shows the price of a specific stereo receiver for a five-year period.Using Year 3 as the base year, calculate the price index for each year.

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Year 1 112/160 = 70
Year 2 144...

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Define GDP and its characteristics.

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GDP is the total market value of all fin...

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Why is GDP a monetary measure?

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GDP is a monetary measure to make it pos...

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What are the two basic ways of deriving real GDP from nominal GDP?

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The first method involves computing a pr...

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Differentiate between nominal and real GDP.

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Nominal GDP is the actual measured GDP i...

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The next four questions refer to the following price and output data over a five-year period for an economy that produces only one good.Assume that year 2 is the base year. The next four questions refer to the following price and output data over a five-year period for an economy that produces only one good.Assume that year 2 is the base year. (a) If year 2 is the base year, give the price index for year 3.(b) Give the nominal GDP for year 4.(c) What is the real GDP for year 4? (d) Tell which years you would deflate nominal GDP and which years you would inflate nominal GDP in finding real GDP. (a) If year 2 is the base year, give the price index for year 3.(b) Give the nominal GDP for year 4.(c) What is the real GDP for year 4? (d) Tell which years you would deflate nominal GDP and which years you would inflate nominal GDP in finding real GDP.

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(a) 4/3 *0 100 = 133.
(b) Nominal GDP = ...

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Of what use is national income accounting to economists and to policy makers?

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There are three basic reasons for the im...

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Net investment can be positive, negative, or zero, but gross investment can never be less than zero.Explain.

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This is true by definition.Gross investm...

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Explain what is and what is not included in government purchases in GDP.

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Government purchases are government expe...

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