Suppose you were asked to compute national income and product for an economy. Explain the modifications...

Suppose you were asked to compute national income and product for an economy. Explain the modifications of the usual methods that you will apply to correct the existing problems. Do you think it will result in a larger or a smaller income?

Expert Solution

Rahul Sunny answered 2 years ago

A national income accounting exercise: The gross national product of an open economy could be expressed...

A national income accounting exercise: The gross national product of an open economy could be expressed as following identity equations: Y = C + I + G + (EX – IM) or Y = C + I + G + CA and Y=C+Sp +T where Y = gross national product: C = aggregate consumption; I = aggregate investment; G = government spending; EX = exports; CA = current account IM = imports; Sp = private savings; T = tax; current...

Twenty economist were chosen randomly, and asked to predict if the national economy would improve during...

Twenty economist were chosen randomly, and asked to predict if the national economy would improve during the next 12 months. Eleven of the economists predicted an improvement, and nine economists predicted a decrease in the economy. Conduct a hypothesis test to determine if there is a difference in the prediction for the national economy during the next 12 months. Use the normal approximation to the Binomial. In addition, assign a “+” sign to “Improvement” and a “-” sign to “Decrease.”...

Twenty economist were chosen randomly, and asked to predict if the national economy would improve during...

Twenty economist were chosen randomly, and asked to predict if the national economy would improve during the next 12 months. Eleven of the economists predicted an increase, and nine economists predicted a decrease in the economy. Conduct a hypothesis test to determine if there is a difference in the prediction for the national economy during the next 12 months. Use the normal approximation to the Binomial. In addition, assign a “+” sign to “Improve” and a “-” sign to “Decrease.”...

. Given the following National Income data, Compute a) GNP b) NNP c) National Income. Hint:...

. Given the following National Income data, Compute a) GNP b) NNP c) National Income. Hint: use income method here. N'billion Income from employment 162.4 Indirect business taxes 14.5 Gross capital formation (investment) 63.2 Transfer payments 11.0 Government final consumption expenditure 58.7 Export of goods and service 15.0 Private consumption expenditure 186.1 Subsidies 12.4 Personal taxes 38.5 Import of goods and services 17.2 Consumption of fixed capital 10.5 Net factor income from abroad 1.3

1)Suppose the Canadian economy is at its long-run equilibrium with national income equal to the potential...

1)Suppose the Canadian economy is at its long-run equilibrium with national income equal to the potential national income. a) Suppose there is an increase in government purchases (G). Use ALL diagrams to show the effect of an increase in government purchases (G) on aggregate demand. Are equilibrium price and national income higher or lower at the new short-run equilibrium? b)Suppose there is a decrease in wealth (W) because of a price change. Use ALL diagrams to show the effect on...

A. Derive and explain the national income identity for an open economy. B. Does spending necessarily...

A. Derive and explain the national income identity for an open economy. B. Does spending necessarily have to equal output in an open economy? C. Is there a relationship between a country’s national budget deficit and its trade deficit?

Using the National and Income and Product Account GDP definition to explain how the following are...

Using the National and Income and Product Account GDP definition to explain how the following are measured: a) Private Savings b) National Savings c) Gross Savings

The national income identity for an open economy economy is given as Y = C +...

The national income identity for an open economy economy is given as Y = C + I + G + EX − IMwhere Y is real GDP; C is consumption, I is investment, G is government expenditure, EX is exports and IM is imports. (a) List the types of types of purchases that are included in C (5 points) (b) What does I include? (3 points) (c) Explain why G is most likely much less than the actual government outlays...

3- Describe what are the components of gross national product and national income.

Suppose you were asked to investigate which predictors explain the number of minutes that 10- to18-year-old...

Suppose you were asked to investigate which predictors explain the number of minutes that 10- to18-year-old students spend on Twitter. To do so, you build a linear regression model with Twitter usage (Y) measured as the number of minutes per week. The four predictors you include in the model are Height, Weight, Grade Level, and Age of each student. You build four simple linear regression models with Y regressed separately on each predictor, and each predictor is statistically significant. Then...

Question

Suppose you were asked to compute national income and product for an economy. Explain the modifications...

Solutions

Expert Solution

Related Solutions

A national income accounting exercise: The gross national product of an open economy could be expressed...

Twenty economist were chosen randomly, and asked to predict if the national economy would improve during...

Twenty economist were chosen randomly, and asked to predict if the national economy would improve during...

. Given the following National Income data, Compute a) GNP b) NNP c) National Income. Hint:...

1)Suppose the Canadian economy is at its long-run equilibrium with national income equal to the potential...

A. Derive and explain the national income identity for an open economy. B. Does spending necessarily...

Using the National and Income and Product Account GDP definition to explain how the following are...

The national income identity for an open economy economy is given as Y = C +...

3- Describe what are the components of gross national product and national income.

Suppose you were asked to investigate which predictors explain the number of minutes that 10- to18-year-old...