Wednesday, May 13, 2020

Questions On Gross National Expenditure Essay - 986 Words

Economics Assignment 1 HALINA BINTI HUSSAIN 792153 Question 1 Gross National Expenditure (GNE) is defined as the aggregate national expenditure by all residents of a specific country on final goods and services, namely in the form of private consumption expenditure (C), investments (I) and government expenditure (G). The calculation of GNE does not take into account the origin of the goods and services. GNE and GDP(E) are different. GNE accounts for all final goods and services bought in a specific country including those bought from abroad also known as imports (M). For example, some households may spend on locally produced Peter’s ice cream while other residents may purchase Hà ¤agen-Dazs ice cream imported from USA. Despite their origin, both ice creams are accounted for in GNE. GDP(E) however, is only interested in measuring residents’ expenditure on domestically produced products as well as those goods and services produced domestically but sold in the foreign market known as exports (X). Hence, imports are deducted from the calculation of GNE whilst exports are added in order to arrive at GDP (E). In some circumstances, GDP(E) and GNE can be equal which is when no goods and services are imported nor exported. Another situation would be when total imports equals to total exports, hence trade balance would be zero. Question 2 In a closed economy, it is assumed that the total level of real production (Y) is dependent on the inputs of labour (L) and capitalShow MoreRelatedMacroeconomics641 Words   |  3 PagesIntroduction to Economics EF 110 Take home exercise Due date: Wednesday 27th April 6pm 2011 This assignment must be submitted via moodle EF110 homepage. This assignment accounts for 10% of the final module grade Answer all questions. 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Say the Gross Domestic Product is down 10% in Quarter One and then in Quarter Two the Gross Domestic Product has gone up byRead MoreThe Study of Macroeconomics1507 Words   |  7 PagesMacroeconomic Questions †¢ Why do output and employment sometimes fall and how can unemployment be reduced? †¢ What are the sources of price inflation and how can it be kept under control? †¢ How can a nation increase its rate of economic growth? †¢ Objectives of Macroeconomics OUTPUT †¢ high level and rapid growth of output †¢ to provide goods and services that the population desires †¢ most comprehensive measure of total output in an economy is the gross domestic product / gross national product Read MoreDescription Of An Seasonally Adjusted Data1668 Words   |  7 PagesSubject Code: ECON10003 Subject Name: Introductory Macroeconomics Student ID Number: 762224 Student Name: Laura Walker Assignment Name or Number: 1 TUTOR: Saqib Manzoor TUTORIAL: Tuesday 8:00am – 9:00am QUESTION ONE a. Seasonally adjusted data March quarter 2014 - March quarter 2015 December quarter 2014 - March quarter 2015 Australia 2.3% 0.9% United States 2.9% 0.14966% (≈0.150%) (Australian Bureau of Statistics, 2015) (Bureau of Economic Analysis, U.S. Department of CommerceRead MoreEconomic Model Of Supply And Demand788 Words   |  4 Pagescapital Fiscal Deficit GDP Debt Net exports Consumer Price Index Producer Price Index Consumption spending Investment Inflation Production Possibility Curve II. ESSAY QUESTIONS. Answer any TWO questions. Answer all parts of each question that you choose. 1. a) What is Supply ? What is Demand ? b) Develop a model of a market, utilizing supply and demand. What are the dominant variables or parameters ? c) What is a shortageRead MoreDifference Between The And Australia1390 Words   |  6 PagesQUESTION ONE a. Seasonally adjusted data March quarter 2014 - March quarter 2015 December quarter 2014 - March quarter 2015 Australia 2.3% 0.9% United States 2.9% 0.14966% (≈0.150%) (Australian Bureau of Statistics, 2015) (Bureau of Economic Analysis, U.S. Department of Commerce, 2015) There is a slight difference in growth change over the past year for the US and Australia (by 0.6%). The difference between the respective levels of growth over the December quarter 2014 – March quarter 2015 is greaterRead MoreEcon984 Words   |  4 Pagesslot marked for your section in the white assignment collection box on the 2nd floor of Dunning Hall. Late assignments will not be accepted. †¢ Use the Cover Page when submitting assignments. Place diagrams for particular questions with your answers to those questions. †¢ Group Work: Maximum four per group, all students must be registered in the same section of the same course. Names must be in alphabetical order on the cover page. †¢ Graded work will be available for pick-up beginningRead MoreThe Value Of The National Debt906 Words   |  4 PagesThe Actual National Debt When the economists talk about the national debt, they talk about the ratio of the national debt to the Gross Domestic Product. Well, why do they compare those two concepts, instead of just giving us the sum of the national debt? In order to answer this question we will have to define what is the national debt, and what is the GDP. The National Debt The National Debt is the sum of all past federal deficits, minus any surpluses. (Rittenberg, L. and Tregarthen, T., 2012). ToRead MoreAssignment 2: What Is Gross Domestic Product?988 Words   |  4 PagesGo to the following website: www.bea.gov/index.htm Based on the information contained on the website above, answer the following questions: 1. What was Real GDP for 2009? The Real GDP for 2009 was 13,973.7 (NIPA Tables 1.1.5, 2012) a. What does GDP tell us? The GDP gives information regarding the country’s economy in regards to total money value on all final goods and services that are produced in the economy over any given time frame - annually or quarterly. Real GDP accounts for priceRead MoreGovernment Spending On Welfare And The Gross Domestic Product1673 Words   |  7 Pageswelfare is one of the biggest categories. Expenditure on welfare is directly extracted from government statistics[1]. There has been a great debate as to whether government spending on welfare has any relationship with the size of a country’s GDP[2]. As such, this research is meant to demystify the situation. The purpose of carrying out this research is to examine any underlying correlation between the government spending in welfare of the people and the gross domestic product. There are two hypotheses

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