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3 years ago

To avoid double-counting output in GDP measures, _____ are excluded in GDP.

1 answer:

7 0

The correct answer is d). We have that government spending can also give way to products and services, just like private enterprises, thus there is no double-counting there. Services such as haircuts have their own value, which are separate from any other material products. Finally exports are also not counted twice; Raw materials though would be counted twice if we counted them for the GDP since their value is incorporated in the value of the final product. For example, we cannot count towards the GDP the value of rubber production in a country since then, if we counted the value of the tires too, we would count the value of the rubber in the tires twice (one time as rubber/ one time as part of the tire).

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Cannonier, Inc., has identified an investment project with the following cash flows. Year Cash Flow 1 $ 1,040 2 1,270 3 1,490 4

Zolol [24]

Answer:

Total FV= $7,313.7

Explanation:

Giving the following information:

Year Cash Flow 1 $ 1,040 2 1,270 3 1,490 4 2,230

Discount rate= 9% = 0.09

<u>To calculate the future value, we need to use the following formula on each cash flow</u>:

FV= Cf*(1+i)^n

FV1= 1,040*(1.09^4)= 1,468.04

FV2= 1,270*(1.09^3)= 1.644.69

FV3= 1,490*(1.09^2)= 1,770.27

FV4= 2,230*1.09= 2,430.7

Total FV= $7,313.7

4 0

3 years ago

During a certain year, the nominal interest rate was 7 percent, the real interest rate was 4 percent, and the CPI was 198.3 at t

Dima020 [189]

Answer:

CPI at the beginning of the year = 192.52

Explanation:

given data

nominal interest rate = 7 percent

real interest rate = 4 percent

CPI = 198.3

to find out

CPI at the beginning of the year

solution

we know that according to fisher equation

1 + r = $\frac{1+n}{1+i}$ ....................1

and for smaller values is equivalent to r

r = n - i .....................2

here r is real interest rate and n is nominal interest rate and i is inflation rate

so from equation 2

4 = 7 - inflation rate

inflation rate = 3 percent

Rate of inflation = (CPI at the end of the year - CPI at the beginning of the year) × 100 ÷ CPI at the beginning of the year

put here value

3% = (198.3 - CPI at the beginning of the year) × 100 ÷ CPI at the beginning of the year

CPI at the beginning of the year = $\frac{19830}{103}$

CPI at the beginning of the year = 192.52

7 0

3 years ago

Which bests describes the purpose served by economic models within an economic systemh

snow_lady [41]

To identify patterns.

An economic model is a graph or other visual tool that shows how different elements of an economy (supply, demand, etc) come together to help better understand the data.

6 0

3 years ago

Will, who is single and age 50, is employed as a full-time tax accountant at a local manufacturing company where he earns $83,00

fenix001 [56]

Answer: The options available to Will include; the Keogh plan, the SIMPLE IRA and the ROTH plan.

Explanation: The Keogh plan is a tax- deferred benefit plan available to self employed individuals or unincorporations.

A Savings Incentive Match Plan for Employees Individual Retirement Account, "SIMPLE IRA" is a tax-deferred retirement plan provided by the employer that allows employees to set aside money and invest it to grow for retirement.

A Roth IRA is an individual retirement account that is generally not taxed upon distribution, provided certain conditions are met.

5 0

3 years ago

Latoya has $113.94 in her checking account. During the week she goes to an atm and withdraws $40. she is charged a usage fee of

Maksim231197 [3]

She has 168.49 in her bank account

3 0

3 years ago