The Current State of the Economy

Chapter 23 Questions for Review 1. An parsimonys income is the same as its pulmonary tuberculosis beca map every transaction has twain parties: a buyer and a seller. Every dollar go by of several(pre token(a)) buyer is a dollar of income by about seller. frankincense, the transaction contributes equally to the economys income and to the expenditure. 2. gross domesticated product is the grocery shelter of all the bang-ups and go produced at bottom a solid institute in a trusted period of time. Both fervor motorcars and an economy car would remorseful to gross domestic product. The sum they contribute depends on the nett commercialize set. The luxury car usually has a high(prenominal)(prenominal) market value thus lend more(prenominal) to the gross domestic product. 3. Since the pelf is non a final good it is non include in the gross domestic product because gross domestic product besides includes the value of final goods. hence the $2 cut-rate sale of straw does not contribute to the gross domestic product only the $3 of dirty money does. 4. GDP only includes goods and services currently world produced not items produced in the past. When Peggy pretends $100 for the sale of the record collection she do numerous years ago, the value of the record collection is not included in GDP. 5. Consumption, Investment, presidential term Purchase, and unclutter Exports a. Consumption-spending of goods and services much(prenominal) as automobiles, appliances, food and clothing b.

Investment-goods purchased to be use in the future much(prenominal) as capital equipment and inventories c. Government Purchases-spending by local, state, and federal governments such as salaries of government workers as puff up as existence works d. Net Exports-purchase of foreign goods such as a planer being sold to British Airways 6. Economists use real GDP vs. nominal GDP because real GDP measures the economys doing of goods and services and the economys ability to run into wads needs and desires. Thus real GDP is a better measure of the frugal well-being. 7. (write in) 8. A higher GDP would indicate a higher income and expenditure because almost hatful would receive a higher income...If you want to get a full essay, order it on our website: Ordercustompaper.com

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