Which one of the following does NOT represent an injection into
the flow of income and spending in the economy?
a) Spending by local government.
b) Spending on imported goods and services.
c) Spending on exports.
d) Spending on capital goods.
e) Investment spending.
b) Spending on imported goods and services.
Explanation: Spending on imported goods is an example of withdrawals and not injection.
Which one of the following does NOT represent an injection into the flow of income and...
Which of the following is NOT true about gross domestic product (GDP)? a. It includes only final goods and services. b. The values are measured in current dollars c. Intermediate goods and services are excluded to prevent double counting. d. It includes the value of transfer payments. The gross domestic product (GDP) excludes: a. the value of intermediate goods produced. b. the spending by government on new roads and bridges. c. household spending on goods and services. d. the increase...
1. The expanded circular-flow diagram Aa Aa The diagram below shows an expansive circular-flow diagram for the U.S. economy, with arrows pointing in the direction that money flows. To facilitate reference, letter labels have been placed on certain arrows of the diagram Government purchases of goods and services Government borrowing Government Taxes Government transfers Private savings Households Wages, profit, interest, Consumer spending rent Markets for goods and services Factor markets Financial markets Gross Wages, profit, interest, rent domestic Borrowing and...
2. The circular flow of income and expenditure The income and expenditure approaches to measuring a nation's GDP can be combined using the circular flow model. Categorize each flow in the following table as part of either aggregate demand or national income. Flow Aggregate Demand National Income Net taxes (NT) O Investment spending (1) Consumption (C) Government purchases (G) OOO Net exports (X - IM) Disposable income (DI) 0 While national income and domestic product must be equal, income must...
what is the answer?
Name the three injections to the circular flow. Select one: O a. Investment, exports, and government spending O b. Expenses, income, and exports O c. Saving, imports, and taxes d. Consumption, investment, and imports Name the three injections to the circular flow. Select one: O a. Investment, exports, and government spending O b. Expenses, income, and exports O c. Saving, imports, and taxes d. Consumption, investment, and imports
(2.5 points) The following table indicates the Federal Personal Income Tax Rates in 1989. Income Marginal Tax Rate Taxes Paid $0 0% $1 -- $29,750 15% $29,751 -- $71,900 28% $71,901--$149,250 33% Over $149,250 28% (.5 points) Would you characterize this tax schedule as proportional, progressive, or regressive? Explain why. (.5 points) Suppose a person earns $135,000 in 1989. Show in the table the taxes this person would pay in each income category. (.5 points) Calculate the tax rate that...
What key observation did the classical model attempt to explain? A. the economy performs well in the short run, but not so well in the long run B. business cycles are the most important economic problem C. over the short run, the economy performs rather poorly D. markets do not clear without government intervention E. over the long run, the economy performs rather well Which of the following four elements contribute to GDP in the expenditure approach? A. consumption spending,...
Within the circular flow model which of the following is not represented as a flow of funds into firms? A. government purchases B. Consumption spending C. Income payments D. For eight purchases of goods and services
9. The table below contains data for country A for the year 2010. Total income $5731 Household purchases of durable goods $1108 Household purchases of nondurable goods $702 Household purchases of non-education services $203 Household purchases of education services $302 Household purchases of new housing $816 Purchases of capital equipment $333 Inventory changes $75 Purchases of new structures $267 Depreciation $401 Local government spending on goods and services $236 State government spending on goods and services $419 Federal government spending...
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The components of GDP are: Select one: O a. Consumption, government spending, net exports, and investment. O b. Exports, imports, investment, and disposable income. O c. Consumption, exports, imports, and disposable income. O d. Consumption, inventory, government spending, and disposable income. Question 19 Not yet answered Points out of 1.00 P Flag question The crowding out effect refers to a decrease in: Select one: O a. Consumption or investment as a result of an increase in government...
An open economy is described by the following system of macroeconomic equations, in which all macroeconomic aggregate are measured in billions of Namibian dollars, N$: Y = C + I + G + X – M C = 10 + 0.8 Yd T = 10+ 0.2Y X = 80 I = 35 G = 15 TR = 10 – 0.05Y M = 22 + 0.1Y Where: Y is domestic income Yd is private disposable income C is...