4- Measured in current US dollars China’s GDP is smaller than that of the US; but...

4- Measured in current US dollars China’s GDP is smaller than that of the US; but the total investment expenditures in China, measured in US dollars, is much higher in China. Why is that?

Solutions

Expert Solution

GDP includes all the economic activities that take place within the territory of nation and the residents of individuals. It is nothing but the value of economy as a whole. Both US and China are the world most powerful economies . US is calculated as the world most powerful or largest economy with highest GDP and following this is the economy of China.

Although the calculated values of total GDP favours US but the investment expenditure is higher for China. This is understood by the fact that china is the nation which extracts it's GDP majorly through capital investments. The reason for this is because high number of population makes it an attractive location for capitalist developments like technological sectors , healthcare sectors etc. The low cost labour is the major attractions. Hence China attracts high total investment expenditure , which is the majority of its GDP development, which is not the case with US.

Rahul Sunny answered 1 year ago

Next > < Previous

Related Solutions

What is real GDP? How is it measured? Find out the U.S. GDP (in current dollars)...

What is real GDP? How is it measured? Find out the U.S. GDP (in current dollars) and U.S. Real GDP for 1979-2018 and plot them into the same graph. What is the di§erence between the growth rate of nominal GDP, growth rate of real GDP and growth rate of realGDP per capita? What are the determinants of the last one? Find out the growth rate of U.S. Real GDP per capita for 1979-2018 and plot them into a graph

Is nominal GDP measured in terms of quantity or in terms of dollars? If dollars, the...

Is nominal GDP measured in terms of quantity or in terms of dollars? If dollars, the value of the dollar from what period? Is real GDP measured in terms of quantity or in terms of dollars? If dollars, the value of the dollar from what period?

Measured it today's dollars, how much better is it to receive $2,032 in 4 years than...

Measured it today's dollars, how much better is it to receive $2,032 in 4 years than to receive $5,941 in 15 years, if the rate of return is 8.4% per year?

GDP A. is neither a stock or flow measure since it is measured in dollars. B....

GDP A. is neither a stock or flow measure since it is measured in dollars. B. is a stock measure since it represents the total market value. C. could be either a stock or flow measure depending upon whether it is measured in dollars or units of production. D. is a flow measure since it represents the value of a flow of production over a year's period.

Find the data for nominal GDP (GDP current US$) and the data of the corresponding deflators...

Find the data for nominal GDP (GDP current US$) and the data of the corresponding deflators (GDP deflator) for Australia, France, Germany, UK, USA and also the data for the countries of origin of each member of the group from 2000 to 2017. Present the data on a table. a. Present the data on a table b. Calculate the real GDP for all countries and present the data on a table. c. Calculate the growth rate of real GDP and...

Income inequality in most European countries is smaller than it is in the US. Given all...

Income inequality in most European countries is smaller than it is in the US. Given all of the approaches and strategies available to the US (and to Europe) for improving income distribution, why do you think this is so?

2) China’s real per capita GDP has been growing significantly faster than that in the U.S....

2) China’s real per capita GDP has been growing significantly faster than that in the U.S. – China’s growth rate was about 10% several years ago, compared to about 3% for the U.S. a) Using the Solow growth model (with no technological progress), is there reason to believe this disparity in growth rates will disappear in time? What about the disparity in income levels per person? b) How is your conclusion affected if you were told that China has a...

1. which of the following would affect the measured value of US gdp? a. the value...

1. which of the following would affect the measured value of US gdp? a. the value of steel produced in florida by gibraltar, a German steel company, which is added to it's inventory of steel b. the sale of a fire factory in Detroit general motors c. the increase in a Toyota Californias dealership inventory of Toyota cars which were all produced in Japan d. after you're garage is destroyed by a tornado you build a new garage with materials...

In 2018, the US nominal GDP was estimated to be $20.5 trillion dollars while the real...

In 2018, the US nominal GDP was estimated to be $20.5 trillion dollars while the real GDP was estimated to be $18.64 trillion. Why is there a difference? Additionally, explain if GDP is a perfect measure of well-being.

In the last quarter of 2019, US GDP was approximately $21.0 trillion dollars with an unemployment...

In the last quarter of 2019, US GDP was approximately $21.0 trillion dollars with an unemployment rate less than 4%. However, with the precautionary steps taken to stop the spread of COVID-19, a significant number of workers were laid off and unemployment climbed significantly. If the unemployment rate does not decline and stays at an average of 15% for an entire year, then the fall in the US GDP is likely to be Group of answer choices $3.15 trillion. $16.4...

Subjects