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Chapter 8: Q.20 (page 188)

In Table 8-1, what is the total dollar amount that is added to the nation's gross domestic product? Why?

Short Answer

Expert verified

The total dollar amount that is added to the nation's gross domestic product is $20trillion.

Step by step solution

01

Introduction

The GDP is the cash worth of every last great and administration delivered inside the domestic region of the country. In a roundabout stream, the all-out financial worth of labour and products and the pay got by individuals are equivalent so we can take one of the sums. The all-out worth of labour and products is generally equivalent to the pay got by individuals.

02

Explanation

The total dollar amount that is added to the nation's gross domestic product is trillion. It is the all-out cash worth of every single last great and administration that are delivered inside the homegrown area of the country.

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Most popular questions from this chapter

Why do you suppose that many economists worry that including the degree of depletion or pollution of natural resources could make the value of GDP harder to interpret?

In the first stage of manufacturing each final unit of a product, a firm purchases a key input at a price of \(4 per unit. The firm then pays a wage rate of \)3 for the time that labor is exerted, combining an additional \(2 of inputs for each final unit of output produced. The firm sells every unit of the product for \)10. What is the contribution of each unit of output to GDP in the current year?

Explain what happens to contributions to GDP in each of the following situations.

a. A woman who makes a living charging for investment advice on her Internet Web site marries one of her clients, to whom she now provides advice at no charge.

b. A man who had washed the windows of his own house every year decides to pay a private company to wash those windows this year.

c. A company that had been selling used firearms illegally finally gets around to obtaining an operating license and performing background checks as specified by law prior to each gun sale.

Take a look at Table 8-4. Provide a possible explanation of why per capita GDP based on purchasing power parity is higher in China and Indonesia than GDP based on foreign exchange rates.

Based on the information in Table8.3, in what years was the economy in a recession? Explain briefly.
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