Questions from Macroeconomics

Q: Use the information in Problem 20 to calculate the chained-dollar

Use the information in Problem 20 to calculate the chained-dollar real GDP in 2014 expressed in 2013 dollars. Problem 20: An economy produces only apples and oranges. The base year is 2013, and the t...

Q: Define GDP and distinguish between a final good and an intermediate good

Define GDP and distinguish between a final good and an intermediate good. Provide examples

Q: Why does GDP equal aggregate income and also equal aggregate expenditure?

Why does GDP equal aggregate income and also equal aggregate expenditure?

Q: Distinguish between real GDP and potential GDP and describe how each grows

Distinguish between real GDP and potential GDP and describe how each grows over time.

Q: What is a business cycle and what are its phases and turning

What is a business cycle and what are its phases and turning points?

Q: What is PPP and how does it help us to make valid

What is PPP and how does it help us to make valid international comparisons of real GDP

Q: Explain why real GDP might be an unreliable indicator of the standard

Explain why real GDP might be an unreliable indicator of the standard of living.

Q: Classify each of the following items as a final good or service

Classify each of the following items as a final good or service or an intermediate good or service and identify each item as a component of consumption expenditure, investment, or government expenditu...

Q: Use the following figure, which illustrates the circular flow model.

Use the following figure, which illustrates the circular flow model. During 2014, flow A was $13.0 billion, flow B was $9.1 billion, flow D was $3.3 billion, and flow E was –$0.8 bi...

Q: Use the following data to calculate aggregate expenditure and imports of goods

Use the following data to calculate aggregate expenditure and imports of goods and services: ■ Government expenditure: $20 billion ■ Aggregate income: $100 billion ■ Consumption expenditure: $67 billi...