This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Why are only final goods and services included in measuring GDP? Give examples to complete your ... (Read 85 times)

storky111

  • Hero Member
  • *****
  • Posts: 561
on: Jun 29, 2018
Why are only final goods and services included in measuring GDP? Give examples to complete your answer.
 
  What will be an ideal response?

Question 2

Which of the following statements is FALSE?
 
  A) Fiscal policy is the attempt to influence the economy using taxes, transfer payments, and government expenditures.
  B) Government expenditure affects aggregate demand directly because government expenditure is a component of aggregate demand.
  C) Taxes and transfer payments affect aggregate demand by changing disposable income.
  D) An increase in disposable income leads to a decrease in aggregate demand.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

stallen

  • Sr. Member
  • ****
  • Posts: 336
Reply #1 on: Jun 29, 2018
Answer to Question 1

We purposely leave intermediate goods or services out of our calculation of GDP so we don't double count. Examples of this are not counting the tires produced by Firestone that are then sold to Ford to be placed on their new cars. If we counted the tires when they were produced by Firestone and then also counted them when they were part of the Ford, we would be double counting them.

Answer to Question 2

D


storky111

  • Hero Member
  • *****
  • Posts: 561
Reply #2 on: Jun 29, 2018
Correct answers!


stallen

  • Sr. Member
  • ****
  • Posts: 336
Reply #3 on: Jun 29, 2018
Great! Please up vote :D


« previous next »
 

Did you know?

About 3.2 billion people, nearly half the world population, are at risk for malaria. In 2015, there are about 214 million malaria cases and an estimated 438,000 malaria deaths.

Did you know?

Urine turns bright yellow if larger than normal amounts of certain substances are consumed; one of these substances is asparagus.

Did you know?

The tallest man ever known was Robert Wadlow, an American, who reached the height of 8 feet 11 inches. He died at age 26 years from an infection caused by the immense weight of his body (491 pounds) and the stress on his leg bones and muscles.

Did you know?

Historic treatments for rheumatoid arthritis have included gold salts, acupuncture, a diet consisting of apples or rhubarb, nutmeg, nettles, bee venom, bracelets made of copper, prayer, rest, tooth extractions, fasting, honey, vitamins, insulin, snow collected on Christmas, magnets, and electric convulsion therapy.

Did you know?

Recent studies have shown that the number of medication errors increases in relation to the number of orders that are verified per pharmacist, per work shift.

Examples of structures in which extensive surface area is important for function. Examples of structures in which extensive surface area is important for function.
A complete cranium of Australopithecus afarensis from Hadar, Ethiopia. A complete cranium of Australopithecus afarensis from Hadar, Ethiopia.
Measuring Radial Pulse Measuring Radial Pulse
Measuring the Weight and Length of an Infant Measuring the Weight and Length of an Infant
Examples of endocrine disorders. (B) A patient with a goiter. Examples of endocrine disorders. (B) A patient with a goiter.
Find the final velocity of the object Find the final velocity of the object
Video: X chromosome inactivation in calico cats

For a complete list of videos, visit our video library