Income approaches

Assignment Help Business Economics
Reference no: EM138667

1. If you are the chief economist of a country experiencing high unemployment and flat GDP, what macroeconomic policies might you enact in response to these economic conditions? How would you suppose that these strategy changes to impact the economy?

2. An economy achieves macroeconomic equilibrium, explain how? How high level inflation have a macroeconomic equilibrium?

3. Joe manufacturer construct a product that sells for $1,000. In the production process, he pays $750 for wages, $125 for materials, and $ 75 for rent. Three-fourths of Joe's o/p is utilized and the rest is invested.

Clarify about both the flow of product approach and wages approach which can be used to compute GDP also the role profit plays in these calculations. Compute GDP for Joe using both the product and income approaches and show how they must agree.

Reference no: EM138667

Questions Cloud

Explain the connections between opportunity cost : Explain the connections between opportunity cost and the production possibilities frontier.
Produce a recreational commodity : A Los Angeles firm uses a single input to produce a recreational commodity
Comparative advantages : Explain how supreme as well as comparative advantages were used in your simulation.
Production possibilities frontier : Explain the relationship among the bowed out shape of the production possibilities frontier and the increasing opportunity cost of a good as more of it is produced.
Income approaches : Compute GDP for Joe using both the product and income approaches and show how they must agree.
Produce the monopoly output : What is the output of each firm if they collude to produce the monopoly output? What profit does each firm earn with such collusion.
Gradual increase in the percentage of fathers : How would a gradual increase in the percentage of fathers who stay home to care for young children while their wives continue working.
Victimless crimes that are no longer criminal : What are some examples of behavior that at one time wire victimless crimes that are no longer criminal.
Pondering taking the same class : Discuss how you would explain what this class was about to a friend of yours pondering taking the same class.

Reviews

Write a Review

Business Economics Questions & Answers

  Explain natural rate hypothesis are all related

Explain how the short-run Phillips curve, the long-run Phillips curve, the short-run aggregate supply curve, the long-run aggregate supply curve, and the natural rate hypothesis are all related.

  Listing different orderings and coalitions

Listing different orderings and coalitions is not going to work for this problem because there are too many possibilities, excluding you can use different tools which we have discussed in class.

  Activities affects government

Describe how each of these activities affects government, households, and businesses. Describe the flow of resources from one entity to another for each activity.

  Marginal product of capital

The Marginal Product of Labor and the Marginal Product of Capital are given.

  General pattern of the us income distribution

What s the general pattern of the US income distribution over the last century. Explain about the timing of the changes.

  Old economy traders

Old Economy Traders opened an account to short sell 1,300 shares of Internet Dreams at $46 per share

  Rent out to wheat farmers

Assume that you own a 10-acre plot of land that you would like to rent out to wheat farmers.

  Economy in a recessionary or inflationary gap

Find Equilibrium GDP (Y). If potential GDP is 1950, is the economy in a recessionary or inflationary gap. Suppose that the MPC, falls to 0.75, so C = 0.85DI. Find Equilibrium GDP.

  The demand for electricity

the demand for electricity and the concept that nuclear is cleaner than coal and who the special interest groups are that's involved

  Discuss the importance of a well-developed compensation plan

Discuss the importance of a well-developed compensation plan in attracting as well as retaining good employees as well as how to keep those plans from "working too well."

  Country has no financial markets

If the marginal cost of planting and harvesting an acre is $7000 per acre for each of the five acres, how many acres should the farmer plant and harvest.

  Important points and areas on the business cycle.

Illustrate on your graph and in words all important points and areas on the business cycle.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd