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andrezito [222]
3 years ago
10

( ____/10) Economic Growth a. Define GDP, identify what is not included, define the four components, and give an example of each

(_____/5) b. Explain the difference between nominal and real GDP. Use a simplified numerical example with two different years to show your understanding. (_____/5)
Business
1 answer:
Harlamova29_29 [7]3 years ago
7 0

Answer: Gross domestic product (GDP) is the monetary value of the market value of all final goods and services produced in a country at a specific time period.

Explanation:

Economic growth is the increase in the total output of goods and services in the economy.

Gross domestic product (GDP) is the monetary value of the market value of all final goods and services produced in a country at a specific time period. The four components of the gross domestic product (GDP) are personal consumption, business investment, government spending, and net exports (difference between export and import)

GDP = C + I + G + (X - M).

where C = consumption

I = investment

G = government expenditure

(X - M) = Net Export

The items not included in the are

1. Sales of goods produced outside the domestic borders of a country.

2. Sales of used goods.

3. Black market i.e. the illegal sales of goods and services.

4. Intermediate goods.

Nominal GDP is measure of the monetary value of all the final goods and services that are produced within a country at current market prices while Real GDP is the measure of a country’s output using the value of its goods and services, investments, government spending and exports. Real GDP is the nominal GDP and adjustment in inflation or deflation.

For example, if nominal GDP is $120,000 and the deflator is 1.4. Calculate Real GDP.

Real GDP = Nominal GDP / Deflator

= 120000 / 1.4

= $ 85714.29

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Oriole Company gathered the following reconciling information in preparing its August bank reconciliation: Cash balance per book
noname [10]

Answer:

$23490

Explanation:

Update the Cash Book by recording the items that appear in the Bank Reconciliation Statement and not in the Cash Book.

Cash Book

Debit  :

Balance before adjustments                    $19,800

Notes receivable and interest                   $4,880

Totals                                                        $24,680

Credit :

Bank charge                                                   $100

Dishonored check                                      $1,090

Balance (adjusted)                                   $23,490

Totals                                                        $24,680

8 0
2 years ago
The first Pepsi yields Craig 18 units of utility and the second yields him an additional 12 units of utility. His total utility
Ilia_Sergeevich [38]
<h3>Answer:</h3>

C) 8 units of utility.

<h3>Explanation:</h3>
  • Marginal utility refers to the change in the total utility that is achieved from the consumption of one more unit of good.
  • It is calculated by getting the change in total utility and dividing it by the change in the number of units consumed.

In this case;

First yields = 18 units

Second yields = 18 + 12 units = 30 Units

Third yields =  38 units

Therefore;

Marginal unit = 38 units - 30 units

                      = 8 units

Therefore, marginal utility is 8 units of utility.

5 0
3 years ago
The Corner Grocer has a 7-year, 6 percent annual coupon bond outstanding with a GHS 1,000 par value. The bond has a yield to mat
Amanda [17]

The increase of yield to maturity to 6.5% would reduce bond price by 5.43%

What is bond price?

The bond price is the present value of annual coupons over the bond life of 7 years and the face value payable to bondholders at bond maturity discounted at the yield to maturity of the bond.

We can determine the bond prices with yield to maturity of 5.5% and with 6.5% yield to maturity using a financial calculator which requires that the calculator be set to its end mode since its annual coupons are payable at the end of each year, rather when the coupons would be paid at the beginning of each year.

Initial bond price:

I/Y=5.5(bond yield is 5.5%, without the % sign)

PMT=60(annual coupon=face value*coupon rate=1000*6%)

N=7(number of annual coupons in 7 years)

FV=1000(the face value is 1000)

CPT(press compute)

PV=GHS 1,028.41

New price with YTM of 6.5%:

I/Y=6.5(bond yield is 6.5%, without the % sign)

PMT=60(annual coupon=face value*coupon rate=1000*6%)

N=7(number of annual coupons in 7 years)

FV=1000(the face value is 1000)

CPT(press compute)

PV=GHS 972.58

change in bond price=(972.58/ 1,028.41)-1

change in bond price=-5.43%

Find out more about bond pricing on:brainly.com/question/25596583

#SPJ1

8 0
2 years ago
Prepare journal entries to record these transactions. (Credit account titles are automatically indented when amount is entered.
garik1379 [7]

Answer:

The journals to be recorded are as follows:

(a) Debit Accumulated depreciation                    $41,000

    Credit Equipment                                             $41,000

(b) Debit Accumulated depreciation                    $37,200

    Debit Loss on disposal [$41,000 - $37,200]    $3,800

    Credit Equipment                                              $41,000

(To recognize the disposals of the company's equipment)

Explanation:

Retiring company's asset otherwise means to dispose of the assets. Disposal of an asset can be as a result of being fully depreciated, wear and tear, obsolescence, new technological improvement, idleness of the assets, etc.

(a) In part (a) of the question, the asset was fully depreciated without salvage value, so there is zero gain or loss on disposal. The relevant accounting entries are as recorded above.

(b) Here, the accumulated depreciation was less than the cost, meaning the asset was not fully depreciated, which can be as a result of any of the reasons cited above. The company therefore realized a loss of $3,800 upon disposal.

7 0
3 years ago
Josey Doakes was reading the balance sheet of Gogoldze Inc. when she spilled grape juice on it. After the juice spill, the balan
e-lub [12.9K]

Answer:

The correct option is D. $80

Explanation:

Please see attachment

7 0
3 years ago
Read 2 more answers
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