1) Which of the following would be an example of an intermediate good? A) An oven purchased by a baker for his business. B) New tires purchased at your local garage to replace your old ones. C) A wedding ring purchased by an engineer for his fiancée D) Flour purchased by a baker to make her cookies. 2) A transfer payment is a payment by the government to an individual A) for a service. B) for an investment good. C) for a consumption good. D) for which the government does not receive a good or service
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would be counted once when they are sold to the car manufacturer‚ and again when the car is sold to the consumer. The national income of a country can be measured in three different ways‚ viz the Income Approach‚ the Output Approach and the Expenditure Approach. The use of any of these approaches produces the same result if carefully implemented. The measurement and analysis of the total output produced in an economy is known as social accounting. National income Concepts In national income
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constraints‚ enables the priontization of spending in the linewith policy objective. The budget objective is to aggregate fiscal disipline‚ allocative efficiency and operational efficiency. The budgeting process can begin with preparing a sales budget. Based on expected sales volume‚ merchandisers can budget purchases‚ selling expenses‚ and administrative expenses. Next‚ the capital expenditures budget is prepared‚ which includes all budgeted purchases and direct labor. There are three type of budget
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If a household earns £200 a week and spends £150 each week on domestically produced goods and services‚ how much does it withdraw from the circular flow? £50 (b) What forms will these withdrawals take? Saving‚ taxes‚ expenditure on imports (c) Assume that total household incomes rise from £500bn to £550bn. Assume that this results in the consumption of domestically produced goods and services rising from £450bn to £490bn. What is the mpcd?
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a stable economy is no small challenge for any nation however possessing the ability to change and invent new and created ways of maintaining makes for a thriving economy. This newsletter will summarize the different economic factors that affect aggregate demand and supply such as unemployment‚ expectations‚ consumer income‚ and interest rates within the United States. Additionally‚ what fiscal policies are recommended by the United States government and whether or not these policies are effective
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the level of expenditure and/or rate of taxes. Expansionary fiscal policy refers to increase government expenditure or a lower tax in order to inject into or withdraw from the circular flow of money respectively‚ this results a raise in aggregate demand and thus national income. On the other hand‚ deflationary (contractionary) fiscal policy is used by the government as a tool to control the pressures of inflation by reducing expenditure or increasing taxes‚ which thus reduce aggregate demand and preventing
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SOME PROBLEMS IN THE MEASUREMENT OF REAL NATIONAL INCOME By J. L. Nicholson (Chief Statisticion‚ United Kinrdorn Cer~trol Sfatistical Oflcc) The Truth is one and incapable of contradiction; All knowledge that conflicts with itself is Poetic Fiction. -W. H. Auden. I. THE GENERAL SElTING BEFORE discussing problems of method‚ one ought to be clear about aims. One is hardly in a position to taclcle the numerous and various problems that are peculiar to the measurement of real national income
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services produced within a count as part of the GDP * In a given time period- measured in a time period such as a year or quarterly Circular Flow of Expenditure and Income: Households and firms- buy the services of labour‚ capital‚ and land in factor markets * Firms sell and households buy in the goods market * Consumption expenditure: payment for goods and services * firms buy and sell new capital equipment in the goods market * when goods are not sold and left in inventory‚
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towards providing information that could be useful for conducting an environmental scan that would be necessary for developing a strategic marketing plan. U.S. Bureau of Labor Statistics The U.S. Bureau of Labor Statistics‚ through its Consumer Expenditure Survey‚ provides extensive information on the buying habits and trends of American consumers‚ as well as their incomes‚ and their demographic characteristics (bls.gov). The BLS provides information
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Chapter 9 The Government and Fiscal Policy Principles of Macroeconomics‚ Case/Fair‚ 8e 9.1 Government in the Economy Multiple Choice 1) Fiscal policy refers to A) the techniques used by a business firm to reduce its tax liability. B) the behavior of the nation’s central bank‚ the Federal Reserve‚ regarding the nation’s money supply. C) the spending and taxing policies used by the government to influence the economy. D) the government’s ability to
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