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- What are variables that affect AS (also considered the Supply side of GDP)?Calculate total GDP for this economy given the following components of demand. Round your answer to the nearest tenth and enter the value in trillions of dollars. Components of GDP on the Demand Side (in trillions of dollars) Consumption Investment Government spending Exports Imports Provide your answer below: trillion Total GDP 12.9 3.8 4.2 3.0 4.2 ?Draw horizontal or downward sloping price-consumption curve and explain in detail with possible example
- Create a graph for an aggregate demand curve. Use the variable ‘Price Level’ for the vertical axis and ‘Real GDP’ for the horizontal axis. In your answer, explain why there is an inverse relationship between the price level and real GDP. Use your graph to illustrate your explanations. Also, discuss determinants of Aggregate Demandor factors that shift Aggregate Demand curve.“The total demand for goods and services consists of consumption demand,investment demand, government demand and net exports.” In terms of thisstatement, discuss the three sets of demand factors that can lead to economicgrowth.a) The income elasticity of Abigail’s demand for CDs is 0.75. For Abigail CDs are a normal good or an inferior good? Explain your answer. b) Years ago, Ricky paid $500 for CDs to put together a collection. Today, he sold his CDs for $200. How does this sale affect current GDP?
- A typical consumer's "leisure basket" in the base year 2019 is as follows: 20 movie tickets $15.00 each 4 theme park tickets $80.00 each 30 swimming passes $10.00 each 2 interstate holidays $400 each 1 international holiday $2000 each The closure of international borders decreases demand for international holidays in 2020. This causes interstate holidays to rise in price to $800 each. The price of other items in the leisure basket are unchanged. a. Calculate the change (as a percentage) in the "leisure index" between 2019 and 2020. b. Suppose consumer preferences change in 2020 and they are completely indifferent between two interstate holidays and one international holiday. In this situation, how large is the substitution bias in the "leisure index"? c. Explain how biases in the "leisure index" create a difference between the price changes consumers experience and the price changes described by the "leisure index".Describe how different parts of the economy may have experienced shifts and changes in supply and demand. Provide at least 4 examples.How does the aggregate goods and services market differ from the regular supply and demand market? Address the measures of price, quantity, and the demand and supply curve(s).
- Explain how the law of diminishing marginal utility helps in deriving the demand curve. Explain how double counting occurs in computing GDPDescribe whether each component of demand comprised GDP has become more important when calculating GDP less important or stayed the samePlease answer the correct answer please both are questions 1.2.3 explain please ASAP Don't answer by pen paper please State whether the following statements are true or false, then explain.1. Buying a Japanese-brand vehicle that was made in Texas would harm the U.S. GDP.2. Ken is not a U.S. citizen but teaches at the University of Chicago. The salary of his servicecannot be counted towards the U.S. GDP.3. A $20,000 car was produced and sold to a car dealer in 2019, but it was sold to final consumerin 2020 for $20,000 – then $20,000 is counted to the GDP of 2020.
