Economics (Irwin Economics)
21st Edition
ISBN: 9781259723223
Author: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn Dr.
Publisher: McGraw-Hill Education
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Question
Chapter 27, Problem 1DQ
To determine
The usefulness of national income statistics.
Expert Solution & Answer
Explanation of Solution
National income statistics estimates the level of production in the economy at some particular time; taking the economy as a whole, it will explain such a situation. In the long run, it will be helpful to determine if the economy is growing, constant, or declining. It offers a foundation in order to design and to apply public policies to eventually helping the economy’s performance to improve. In case national income statistics are not present, then the economic policy will just be a prediction. It also lends a helping hand to define policies that will preserve and also improve the economy's health.
Economics Concept Introduction
Concept Introduction:
National income statistics: It is used by a country to gather data and aggregate economic activity for a given time period.
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Students have asked these similar questions
4. Below is a list of domestic output and national income figures for
a certain year. All figures are in billions. The questions that follow
ask you to determine the major national income measures by both
the expenditures and income approaches. The results you obtain
with the different methods should be the same. LO7.4
Personal consumption expenditures
$245
7.
Net foreign factor income
4
Transfer payments
12
Rents
14
Consumption of fixed capital (depreciation)
27
Statistical discrepancy
8.
Social Security contributions
20
Interest
13
Proprietors' income
33
Net exports
11
Dividends
16
Compensation of employees
223
Taxes on production and imports
18
Undistributed corporate profits
21
Personal taxes
26
19
Corporate income taxes
56
Corporate profits
72
Government purchases
33
Net private domestic investment
20
Personal saving
a. Using the above data, determine GDP by both the expenditures
approach and the income approach. Then determine NDP.
b. Now determine NI in two ways: first, by…
1.
dix
Suppose the country produces only two goods: beef and wheat. The table
below summarizes the quantities of each good produced and the
corresponding prices in every year since 2005:
Beef Wheat
Nomin
al
PQP Q GDP
2005 $4 12 $1. 22
0
6
0
11 $1.
23
4
0
15
$1.
24
5 9 5
2007
2006 $4.
5
$4.
6
LO
5
LO
Real
GDP
(in
2006
price
s)
GDP
Deflat
or
Inflation
Rate
(using
GDP
Deflator)
CP
I
Inflation
Rate
(using
CPI)
If nomiņal GDP is 10trillion and real GDP is 12trillion then the GDP deflator is:
120, indicating that the price level has increased by 20% since the base year.
83.33, indicating that the price level has increased by 83.33% since the base year.
O 120, indicating that the price level has decreased by 20% since the base year.
O 83.33, indicating that the price level has decreased by 16.67% since the base year.
Chapter 27 Solutions
Economics (Irwin Economics)
Ch. 27 - Prob. 1DQCh. 27 - Prob. 2DQCh. 27 - Prob. 3DQCh. 27 - Prob. 4DQCh. 27 - Prob. 5DQCh. 27 - Prob. 6DQCh. 27 - Prob. 7DQCh. 27 - Prob. 8DQCh. 27 - Prob. 9DQCh. 27 - Prob. 10DQ
Ch. 27 - Prob. 11DQCh. 27 - Prob. 12DQCh. 27 - Prob. 13DQCh. 27 - Prob. 14DQCh. 27 - Prob. 1RQCh. 27 - Prob. 2RQCh. 27 - Prob. 3RQCh. 27 - Prob. 4RQCh. 27 - Prob. 5RQCh. 27 - Prob. 6RQCh. 27 - Prob. 7RQCh. 27 - Prob. 8RQCh. 27 - Prob. 9RQCh. 27 - Prob. 10RQCh. 27 - Prob. 1PCh. 27 - Prob. 2PCh. 27 - Prob. 3PCh. 27 - Prob. 4PCh. 27 - Prob. 5PCh. 27 - Prob. 6PCh. 27 - Prob. 7PCh. 27 - Prob. 8P
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