Please define and briefly describe the term GDP,
provide the expenditure approach formula to measure GDP and answer
the three questions related to GDP below.
GDP:
Formula (Expenditure Approach):
____________________________________________
____________________________________________
As per the definition of GDP, if Mohammed Qhatani, a Saudi
Citizen, develops a successful app in the US, the GDP of Saudi
Arabia:
□
Increases
□
Decreases
□ Stays constant
As per the Expenditure Approach Formula, if you purchase an
iPhone (produced abroad, assume no local retail...
The expenditure approach to measuring GDP suggests that GDP is
the total expenditure on goods and services by households (C),
investors (I), government (G) and net exports (X-M). Discuss the
economic policies that are implemented by the government to boost
the aggregate demand in the Australian economy – mention and
discuss one distinct policy for each expenditure items. (700
words)
The expenditure approach to measuring GDP suggests that GDP is
the total expenditure on goods and services by households (C),
investors (I), government (G) and net exports (X-M). Discuss the
economic policies that are implemented by the government to boost
the aggregate demand in the Australian economy – mention and
discuss one distinct policy for each expenditure items.
Does the expenditure approach to computing GDP measure U.S.
spending on all goods, U.S. spending on only U.S. goods, or U.S.
and foreign spending on only U.S. goods? Explain your answer.
What is the expenditure approach to measuring GDP? (1 Mark)
Write the formula for GDP when using the expenditure approach. (1
Mark) Define, explain and give a real-world example of each of the
five variables included in the formula. (2 Marks each = 10
Marks).
What is double counting? (1 Mark) What are intermediate goods?
(1 Mark)
Explain how the expenditure approach avoids double counting.
How
does the income approach to measuring GDP differ from the
expenditure approach? Explain the meaning of value added and its
importance in the income approach. what are the leakages from and
injections into the circular flow? How are leakages and injections
related in the circulat flow?
Which of the following would NOT be considered a
component of GDP using the expenditure approach?
Select the correct answer below:
A Japanese car company builds a factory in Detroit.
An American car company builds a factory in Tijuana, Mexico.
The government invests in new infrastructure.
Joe spends $5 buying a hamburger at McDonald's.