The national income accounting identity breaks GDP into four expenditure components. To which of the four components w...

Question

Question

The national income accounting identity breaks GDP into four expenditure components. To which of the four components would th

business economics

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

Correct option is (3).

When government purchases any goods or services for its consumption, be that from households or from firms, that is government expenditure.

Add a comment

Answer 2

Similar Homework Help Questions

The national income accounting identity breaks GDP into four expenditure components. To which of the four components w...

The national income accounting identity breaks GDP into four expenditure components. To which of the four components would the following belong: Ten trucks made by Nissan (Located in Japan) and purchased by Fed EX (a US firm) to replace its aging rolling stock. O Consumption expenditures. Investment. Both investment expenditures and imports. Changes in business inventories.
To derive GDP using the expenditure approach, which of the following components are added togehter? A....

To derive GDP using the expenditure approach, which of the following components are added togehter? A. consumption expenditures, gross private domestic investment, and government expenditures B. consumption expenditures, gross private domestic investment, government expenditures, and net exports C. consumption expenditures, government expenditures, and net exports D. consumption expenditures, gross private domestic investment, and net exports
Calculate the four components of expenditure and GDP for the following economy using data from the...

Calculate the four components of expenditure and GDP for the following economy using data from the table below Instructions: Enter your response as an integer value GDP Consumption expenditures Exports Government purchases of goods and services Construction of new homes and apartments Sales of existing homes and apartments Imports Beginning-of-year inventory stocks End-of-year inventory stocks Business fixed investment Government payments to retirees Household purchases of durable goods $600 $75 $200 $100 $200 $50 $100 $50 $100 $100 $150 Consumption expenditures:...

Using the following national income accounting data, compute (a) GDP, (b) NDP, and (c) NI. All...

Using the following national income accounting data, compute (a) GDP, (b) NDP, and (c) NI. All figures are in billions. Category Value Compensation of employees U.S. exports of goods and services Consumption of fixed capital Government purchases Taxes on production and imports Net private domestic investment Transfer payments U.S. imports of goods and services Personal taxes Net foreign income Personal consumption expenditures Statistical discrepancy $195.2 18.8 11.8 59.4 14.4 52.1 13.9 16.5 40.5 2.2 219.1 0.0 Instructions: Round your answers...
Calculate the four components of aggregate expenditure and GDP for the following economy using data from the table below.

Calculate the four components of aggregate expenditure and GDP for the following economy using data from the table below. Instructions: Enter your responses as whole numbers. If you are entering any negative numbers, be sure to include a negative (-) sign in front of those numbers. GDP Consumption expenditures $600 Exports $75 Government purchases of goods and services $200 Construction of new homes and apartments $100 Sales of existing homes and apartments $200 Imports $50 Beginning-of-year inventory stocks $100 End-of-year inventory stocks $125 Business fixed investment $100 Government payments to retirees $100 Household purchases of durable goods $150 Consumption expenditures: _______ Investment expenditures: _______ Govemment Purchases: _______
Using the following national income accounting data, compute (a) GDP, (b) NDP, and (NI. All figures...

Using the following national income accounting data, compute (a) GDP, (b) NDP, and (NI. All figures are in billions. Category Compensation of employees U.S. exports of goods and services Consumption of fixed capital Government purchases Taxes on production and imports Net private domestic investment Transfer payments U.S. imports of goods and services Personal taxes Net foreign factor income Personal consumption expenditures Statistical discrepancy Value $194.2 17.8 11.8 59.4 14.4 52.1 13.9 16.5 40.5 2.2 219.1 Instructions: Round your answers to...

Using the following national income accounting data, compute (a) GDP. (b) NDP, and (c) NI. All...

Using the following national income accounting data, compute (a) GDP. (b) NDP, and (c) NI. All figures are in billions Category Compensation of employees U.S. exports of goods and services Consumption of fixed capital Government purchases Taxes on production and imports Net private domestic investment Transfer payments U.S. imports of goods and services Personal taxes Net foreign factor income Personal consumption expenditures Statistical discrepancy Value $204.2 17.8 11.8 59.4 14.4 52.1 13.9 16,5 40.5 2.2 229.1 0 Instructions: Round your...
National Product and Income Accounts (Please i want the steps! ) Given the following information, answer...

National Product and Income Accounts (Please i want the steps! ) Given the following information, answer the next four questions: Personal consumption expenditures 241 Transfer payments 12 Statistical discrepancy 1 Rents 14 Depreciation (capital consumption allowance) 27 Net interest 12 Net exports (X-M) 11 Compensation of employees (wages) 223 Indirect business taxes 18 Profits (Corporate and proprietors’ income) 89 Government purchases 72 Gross...
3. Note the following accounting identity for gross national income (GNI): GNI = C + I...

3. Note the following accounting identity for gross national income (GNI): GNI = C + I + G + TB + NFIA Using this expression, show that in a closed economy, gross domestic product (GDP), gross national income (GNI), and gross national expenditures (GNE) are the same. Show that domestic investment is equal to domestic savings.

r components of aggregate expenditure and GDP for the following economy using data from the table...

r components of aggregate expenditure and GDP for the following economy using data from the table below. Instructions: Enter your responses as whole numbers. GDP Data Consumption expenditures $600 Exports $75 Government purchases of goods and services $200 Construction of new homes and apartments $100 Sales of existing homes and apartments $200 Imports $50 Beginning-of-year inventory stocks $100 End-of-year inventory stocks $125 Business fixed investment $100 Government payments to retirees $100 Household purchases of durable goods $150 Consumption expenditures: $...

The national income accounting identity breaks GDP into four expenditure components. To which of the four components w...

Homework Answers