The reason(s) why real GDP grows, in the long run, is that Select one or more: O imports increase. O governments collect more taxes. O capital stock grows as a result of consumption. net investment is positive. O low cost of education.
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- a. Economists referring to investment mean the: O purchase of financial assets within an economy. O purchase of financial and physical assets within an economy. O formation of new productive capital within an economy. O development of new technologies to increase productivity. O b. Investment is used to buy: O goods and services that will enhance productivity and increase output. O services, but not goods, that will enhance productivity and increase output. O goods, but not services, that will enhance productivity and increase output. c. Determine whether the following transactions are included in gross investment. i. New residential hòusing: Included in gross investment ii. Changes in inventories: Included in gross investment O iii. Changes in depreciation: Included in gross investment iv. Purchase new shares of a company: Included in gross investment x v. Firms purchasing new capital: | Included in grøss investment archWhen the U.S. government removes investment tax credits: O technological innovation advances more rapidly. O the cost of capital increases. O the return on investment increases. O capacity utilization in the economy expands. O consumption spending falls.Classify each of the following items as a final good or service or an intermediate good or service, and identify which is a component of cons government expenditure on goods and services. A. A new limousine for the president B. Banking services bought by a student C. New airplanes bought by United Airlines D. Packing boxes bought by Amazon.com O 1. A is an intermediate good, B is a final service that is consumption expenditure, C is a final good that is investment, and D is a final good that is investment. O2. A is a final good that is government expenditure, B is a final service that is consumption expenditure, C is a final good that is consumption expenditure, and D is a final good that is investment. O 3. A is an intermediate good, B is a final service that is investment, C is a final good that is investment, and D is an intermediate good. O4. A is a final good that is government expenditure, B is a final service that is consumption expenditure, C is a final good that is investment,…
- Question 2 Figure 23-1 L W L N M B Refer to Figure 23-1. Which of the following pairs correctly identify W and Y? a. Markets for factors of production and markets for goods and services O b. Firms and households O c. Expenditures and income O d. Consumption and investment +The amount of capital in an economy is a(n) while the amount of investment is a(n) Select one: Оа. None of these answers is correct. O b. intermediate good; final good O c. flow; stock O d. stock; flow O e. final good; intermediate goodWhich of these items will increase the level of national income? O a. Higher gross output b. Lower net factor income from abroad O c. Higher intermediate consumption O d. Higher depreciation
- Spending on rebuilding an interstate highway connecting The Triangle with Richmond, VA is an example of: O A. government expenditure. B. consumption. C. investment. D. exports. Reset SelectionQuestion 14 Payments to households not in exchange for goods and services currently produced are: O a consumption expenditures O b.investment expenditures Oc transfer payments. Od government purchases.Real Consumption westion 1 The diagram below shows alternate paths for two hypothetical economies, each starting with GDP of $1 billion. Assume that Area 1 is equal to Area 2. at yet swered rked out of Economy B 2% growth Area 2 Flag question Еconomy A 1% growth Area 1 Year X Year Y Time FIGURE 25-1 Refer to Figure 25-1. Which of the following statements about Economies A and B is correct? Select one: O a. Economy B will sustain higher material living standards than Economy A in the long run. O b. Economies A and B will have equal material living standards beginning at Year Y. O C. Economies A and B will have equal material living standards beginning at Year 0. O d. Economy A will sustain higher material living standards than Economy B in the long run. O e. Economies A and B will have equal material living standards beginning at Year X. In a macro model with a constant nrice levelan increase in government nurchases will cause the AF curve to shift E 2°C Light rain/snow 13:01 on 2 C )…
- Saving equals O A. income minus net taxes O B. total income minus total expenditure O C. net taxes minus government expenditure D. income minus consumption expenditure minus net taxesIn the economy of Talikastan in 2015, exports were $200, GDP was $2000, government purchases were $200, imports were $270, and investment was $500. What was Talikastan's consumption in 2015? O a. $1230 b.$1770 Oc. $1370 d.5830A Canadian publisher purchases new computers. What impact does this purchase have on investment and GDP? Select one: O a. It leaves GDP unchanged and makes investment higher. O b. It makes investment higher and GDP lower. O cit leaves investment unchanged and makes GDP lower. O d. It makes investment higher and GDP higher.