How is gdp calculated using the income approach

Assignment Help Macroeconomics

Reference no: EM132658957

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 (full 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: (1) 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
U.S.
GDP 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: EM132658957

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