By how much does gdp rise

Assignment Help Microeconomics
Reference no: EM132117927

Question: What counts as GDP (II)? By how much does GDP rise in each of the following scenarios? Explain.

(a) A computer company buys parts from a local distributor for $1 million, assembles the parts, and sells the resulting computers for $2 million.

(b) A real estate agent sells a house for $200,000 that the previous owners had bought 10 years earlier for $100,000. The agent earns a commission of $6,000.

(c) During a recession, the government raises unemployment benefits by $100 million.

(d) A new U.S. airline purchases and imports $50 million worth of airplanes from the European company Airbus.

(e) A new European airline purchases $50 million worth of airplanes from the American company Boeing.

(f) A store buys $100,000 of chocolate from Belgium and sells it to consumers in the United States for $125,000.

Reference no: EM132117927

Questions Cloud

Sources to fund the expected growth : What amount of additional funds will Wall-E need from external sources to fund the expected growth?
Monthly payments and an apr : You have just purchased a home and taken out a $480,000 mortgage. The mortgage has a 30-year term with monthly payments and an APR of 5.76%.
What is the value of the stock : a. What is the value of the stock? b. What is the present value of the growth opportunity?
What are the terminal cash flows in year 6 : Today, the book value of the machinery is $11265. The tax rate is 23 percent. What are the terminal cash flows in Year 6?
By how much does gdp rise : What counts as GDP (II)? By how much does GDP rise in each of the following scenarios? Explain. (a) A computer company buys parts from a local distributor.
What is the value of the stock : a. After the repurchase, what is the value of the stock, according to your model?
Ellen anticipated college costs : How large must the annual payments at t = 5, 6, and 7 be to cover Ellen's anticipated college costs?
What are these bonds worth today if the required : What are these bonds worth today if the required market rate of return is 4.5 percent?
Develop the system in java using an agile approach : You are responsible for the development of a software design support system that supports the translation of software requirements.

Reviews

Write a Review

Microeconomics Questions & Answers

  1 the demand for steel ingots is given by the following

1. the demand for steel ingots is given by the following p150-0.5q. the private marginal cost of steel producers is

  What is isoquants

What is isoquants and at what point an isoquants are economically efficient?

  Would cause unemployment to change by what percentage

According to Okun's Law, if the normal rate of growth of GDP is 3% and the current unemployment rate is 6%, an increase in GDP growth to 4% would cause unemployment to change by what percentage?

  What is the conditional convergence

Distinguish between "conditional convergence" and "unconditional convergence" of per capita income. On what does "conditional" convergence of income depend.

  Explain how the problems are interconnected.

Among the problems that hinder growth in developing economies are poor infrastructure, lack of financial institutions and a sound money supply, a low saving rate, poor capital base, and lack of foreign exchange. Explain how these problems are inte..

  Downwards sloping demand curve for tea

Assume that coffee and tea are substitutes. given a downwards sloping demand curve for tea

  Calculate the following confidence intervals for s2

6. A certain population of individuals has a mean IQ of 100, but the variance is unknown. In a random sample of 21 individuals, the sample variance was s2 = 204. Calculate the following confidence intervals for σ2

  Determine the profit maximizing quantity

Choose an existing good or service from Will Bury's Price Elasticity, Incremental expenses, or Thomas Money Service Corporation scenarios, or choose an existing business with which you are familiar.

  Determine the average operating ratio for a savings

Which variables is/ are statistically significant in explaining variations in the average operating expense ratio - what type of cost-output r/ship is suggested by these statistical results?

  Explain advantage of discounted cash flow method of analysis

Use the Internet and/or Ashford University Library and/or Mergent Online to look up and describe the cash payback method. Explain the advantage of a discounted cash flow method of analysis.

  Perfect substitutes production

Write down the equation that describes the firms optimal choice of capital and labor. Show that a combination of inputs such that K=2L is optimal

  1 consider the production functionwhere q is total output k

1. consider the production functionwhere q is total output k is the amount of capital used and l is the amount of labor

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