Your school SUBJECT is not the name of your school. It is national output that makes a country rich, not large amounts of money. I hope this helps. Since output identically equals income, the above leads to the following identity: where the triple-bar sign denotes an identity. the autonomous consumer spending in this economy is: A. $800 C. Which of the following is a feature of a good budget? To correct this issue, imports are eliminated from GDP. Then the following function measures the economy's savings corresponding to an income of x billion, Consider an economy with a constant nominal money supply, a constant level of real output Y = 100, and a constant real interest rate, r = 0.10. Select L for Low-income nations.. The logic behind using the expenditure method is that if all the expenditures on final goods are added up, the sum should equal the total production because every produced good is eventually produced in some form or the other. She then sold the dress for 800 rupees (her costs of finishing the dress were 150 rupees).

It is also the income of the producers and sellers Everything that is produced is sold, even if the “selling,” in the case of inventory, is to the producing firm itself. We can then say that she added 150 rupees worth of output to the dress, as opposed to saying that she produced 800 rupees worth of output.


The consumption function of Behr is given by: C=500+.8Y, where Y is income. Logically, the total output should be equal to the value of all goods and services produced in a country, but in counting every good and service, one actually ends up counting the same output again and again, at multiple stages of production. Consider a barber who gives 20 hair cuts a day and charges $10 each. You pay 4 percent of your income in state income tax and 15.3 percent of your labor earnings in federal payroll taxes (employer and employee shares combined). 6-2 Explain why an economy’s output, in essence, is also its income? To illustrate, we can take a dressmaker who purchased a dress material for 500 rupees, then stitched and put final touches on the dress. $800 C. Which of the following is a feature of a good budget?

A. money reserved for saving B. income that is less than its expenses C. high use of credit D. economic incentives Which type of economic system has the highest level of, a) Suppose the economy is characterized by the following behavioral equations: C = c0 + c1YD YD = Y – T I = b0 + b1Y Government spending is constant. The national income accounts are related to an economy’s final product. Another possible way in which one may over count is if imports are involved.

Select M for Middle-income nations. Economic output is one of the most important economic measures for a country.

$1000 B. [clarification needed].

The value of the barber's output is 20*$10 =$200. Taking all this into account, we see that, A third way to calculate national output is to focus on income. National income accounting allows us to assess the health of an economy and formulate policies to maintain and improve that health.

In this method, we look at income which is paid to factors of production and labour for their services in producing the output.

$1000 B. But that is also his daily income. This is usually paid in the form of wages and salaries; it can also be paid in the form of royalties, rent, dividends, etc. The consumption function of Behr is given by: C=500+.8Y, where Y is income. an economy based on advanced technology, Which type of economic system has the highest level of government control? [2] Even though both methods are widely acknowledged to be accurate, the second method is known as the expenditure method and is used more widely, and is the standard method of calculation of GDP in most countries.