ECON 1BB3 Study Guide - Quiz Guide: Market Basket, Gross Domestic Product, Net Domestic Product

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jademoose647

23 Jan 2018

School

McMaster University

Department

Economics

Course

ECON 1BB3

Professor

Bridget O' Shaughnessy

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ECON 1BB3 Full Course Notes

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Aggregate income: all earnings of resource suppliers in an economy during a given period, usually a year. Aggregate expenditure = gdp = c + i + g + (x - im) X - im = exports - imports = net exports (nx: value added at each stage of production, the selling price of a product minus the cost of intermediate goods purchased from other firms. Intermediate goods and services: goods and services purchased by firms for further reprocessing and resale. Final goods and services: goods and services sold to final, or end, users: disposable income (di): the income households have available to spend or to save after paying taxes and receiving transfer payment. Disposable income (di) = consumption (c) + saved (s: net taxes (nt): taxes minus transfer payments, aggregate income = gdp = di + nt. Di = disposable income nt = net taxes. Aggregate income = aggregate expenditure = c + i + g + (x- im)

Related Questions

Aggregate expenditure is the total amount of spending in the economy that determines the level of the GDP. Components of aggregate expenditure are autonomous expenditure, planned private investments, government expenditure, and net exports. When autonomous expenditure increases or decreases, it has a multiplied effect on the GDP.

Referring to the 10-year period of history between 1950 and today that you chose for your final project,( i choose Korean War and Vietnam War.). discuss an example of a change in autonomous spending. Research a government policy implemented during that time and discuss the multiplier effect it had on the economy

Note : there is no more info thats all our instructor provided

An improvement in technology causes the production possibilities frontier (PPF) to

	shift to the right.
	pivot upward.
	shift to the left.
	pivot downward.

(7)

Which of the following is not shown by the circular flow model?

	The flow of resources in one direction and money in the other
	The equality of aggregate spending and aggregate income
	The interaction of households, firms, and the government
	The total amount of goods and services the economy can produce

(8)

Gross domestic product (GDP) is defined as

	the market value of all final goods and services produced in an economy in a given period of time.
	the market value of all consumption goods and services produced in an economy in a given period of time.
	the market value of all investment goods and services produced in an economy in a given period of time.
	the real value of all investment goods and services produced in an economy in a given period of time.

(9)

Real GDP

	includes all domestic and foreign transactions.
	includes the dollar value of domestic transactions only.
	tries to isolate the effect of changing output, holding prices constant.
	measures GDP in terms of prices of goods and services produced.

(10)

When economists talk about economic growth, they are usually referring to

	the percentage change in nominal GDP.
	the percentage change in real GDP.
	the percentage change in nominal investment.
	the percentage change in real investment.

chocolateant769

Assume that the equations below describe the expenditures within a particular macroeconomy and that these equations conform to the assumptions we've made in the lecture regarding the fixed price level Aggregate Expenditure model. All values for expenditure and income are dollar amounts, but for simplicity, we've dropped the $ below.

C = 0.8(DI) + 1000	C = Consumption expenditure, DI = Disposable Income
I = 2000	I = Investment expenditure
G = 1000	G = government expenditure
X = 1600	X = spending on exports
M = 1800	M = spending on imports
DI = Y - T	Y = real GDP, T = tax revenues/>
T = 1000
Yp = 12000	Yp = Potential GDP

Given the equations above, we can describe the GDP, government budget, and net exports in this economy. Select three characteristics from the list below which accurately describe this economy. Note that there is no partial credit on this question. I.e., your answer will either be all correct, or all wrong.

	a.	inflationary gap
	b.	recessionary gap
	c.	no output gap
	d.	government budget surplus
	e.	government budget deficit
	f.	balanced government budget
	g.	trade deficit
	h.	trade surplus
	i.	net exports of zero

pucearmadillo585

ECON 1BB3 Study Guide - Quiz Guide: Market Basket, Gross Domestic Product, Net Domestic Product

ECON 1BB3 Full Course Notes

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