How is gdp calculated using the expenditure approach

Assignment Help Microeconomics

Reference no: EM132666462

Question 1
a) Give the definition of GDP and explain what items are not included in its calculation?
b) How is GDP calculated using the expenditure approach?
c) How is GDP calculated using the income approach?

Question 2
Assume that an economy is initially operating at the natural rate of output (HI employment output). Use the AD-AS model to illustrate graphically the effects on price and output of an increase in government spending. Explain your assumptions with respect to the range of aggregate supply of your analysis.

Question 3
Explain in detail the process of Monetary Policy transmission of a decrease in the cash interest rate. Use relevant graphs to describe how a Central Bank's action on the interest cash rate ripple through the economy and lead to the target policy goal. (Three connected diagrams should be used: (I) money supply and demand (2) investment demand schedule (3) AS/AD diagram. Interest rates is the variable that connects the first and second diagram).

Question 4
Using the World Bank's World Development Indicators database

a) Complete the following table.

	2006	2009	2012	2018
GDP per capita (current)
Australia
China
India
US
COP growth rate
Australia
China
India
U.S.
Inflation rate
Australia
China
India
U.S.

b) Produce a plot for each variable (GDP, gdp growth inflation) comparing the four countries.
c) What can be inferred with respect to economic growth and price control in each of these economies?

Reference no: EM132666462

Questions Cloud

How patriot act increased the authority of law enforcement : Describe how the PATRIOT Act increased the authority of law enforcement agencies in fighting terrorism. Critically analyze the Act, giving reasons and examples.

Discussion on the movie driving while black : As per the professor's instruction, watch the movie "Driving While Black" on the local PBS Channel, which is to air on October 13, 2020, at 9:00 pm.

Briefly describe the nature of the problem : You are making a presentation to a group of law enforcement officers. Your objective is to inform the LEOs of the extent of the problem facing law enforcement.

How does organization development differ from organization : How does organization development differ from organization change?

How is gdp calculated using the expenditure approach : Give the definition of GDP and explain what items are not included in its calculation and How is GDP calculated using the expenditure approach

What kinds of information do teams need to perform well : What are the three biggest mistakes people make when composing a team?

Identify and select a present-day issue : Identify and select a present-day issue that can potentially polarize a specific risk group. Develop and explore the issue and why it can serve as a polarizing.

What is a work breakdown structure : What is a work breakdown structure? What is a responsibility assignment matrix? How are they related?

Dimensions for classification of networked e-business : Discuss the main dimensions for classification of networked e-business.

User Account

All Pages