Reference no: EM13153681
Assume that Country A has a population of 500,000 and only produces one good-cars. Country A produces 100,000 cars per year. The people in Country A purchase 90,000 cars, but there are not enough cars to fulfill all the demand. They decide to import 50,000 more. The government buys 25,000 cars for its police force, and 10,000 cars are bought by companies to transport employees to other locations to work. They also export 65,000 cars to nearby countries for sale.
What is Country A's GDP?
What is the composition of GDP by percentage?
What is the GDP per capita?
If government purchases go up in the short run, what happens to GDP? Show this graphically.
If consumption and government purchases go up, what happens to GDP in the long run? Why? How would this look in a graph?
How does this relate to Keynesian economics?
|
Describe planning or operating decisions
: Describe planning or operating decisions for your new or existing good or service based on the economy's stage in the business cycle and other economic conditions.
|
|
How much of the gain is taxable?
: A couple has owned and lived in their personal residence for 10 years. They purchased the home for $300,000. They sell the home for $900,000. How much of the gain is taxable?
|
|
How much are the approximate tax savings?
: A client makes a tax-deductible contribution of $4,000 to a traditional IRA. The client is in the 25% marginal tax bracket. How much are the approximate tax savings?
|
|
Balance in the raw materials inventory account
: Management of Solman Corporation has asked your help as an intern in preparing some key reports for June. The beginning balance in the raw materials inventory account was $20,000. During the month, the company made raw materials purchases amountin..
|
|
What is the gdp per capita
: What is Country A's GDP - What is the composition of GDP by percentage and what is the GDP per capita
|
|
Explaining a process
: one that explains clearly how to do or make something in a series of steps carried out in a definite order. In this case, Please explain how to bathe a dog.
|
|
Total cash provided by operating activities
: Wilton Company reported net income of $50,000 for the year. During the year, accounts receivable decreased by $7,000, accounts payable increased by $3,000 and depreciation expense of $5,000 was recorded. Net cash provided by operating activities f..
|
|
Explain the many ways transaction costs are problematic
: Explain the many ways transaction costs are problematic in financial markets. As part of your response give an actual example with a numerical breakdown that illustrates this problem.
|
|
Compare and contrast the demise of the accounting firm
: Compare and contrast the demise of the accounting firm of Arthur Andersen with the failures evident in the recent Subprime Financial crisis. What lessons can be learned from these failures?
|