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3 years ago

Accounting for trade in goods and services Suppose the following transactions occur during the current year:

Business

1 answer:

Reil [10]3 years ago

4 0

Answer:

Accounting for trade in goods and services

Indication of the combined effects of transactions on the U.S. national accounts for the current year:

1. Dmitri orders 40 bottles of wine from a French distributor at a price of $30.00 per bottle.

Amount (Dollars) $1,200

Consumption 0

Investment 0

Government Purchases 0

Imports Exports 0

Net Exports 0

Gross Domestic Product (GDP) 0

2. A U.S. company sells 200 spark plugs to a Korean company at $5.00 per spark plug.

Amount (Dollars) $1,000

Consumption 0

Investment 0

Government Purchases 0

Imports Exports $1,200 Exports

Net Exports $1,200

Gross Domestic Product (GDP) $1,200

3. Jake, a U.S. citizen, pays $670 for a surfboard he orders from Greatwaves (a U.S. company).

Amount (Dollars) $670

Consumption $670

Investment 0

Government Purchases 0

Imports Exports 0

Net Exports 0

Gross Domestic Product (GDP) $670

Explanation:

The Gross Domestic Product (GDP) is the total market value of goods and services produced within an economy for a given period. It is calculated with this formula: GDP=C+I+G+(X−M) where, C = Consumption of goods and services, I = Investments, G = Government Spending, X = Exports and M = Imports. It is in turn influenced by transactions that take place on a daily basis. Some of the transactions do not really affect a country's GDP. For example, the order of bottles of wine by Dmitri (supposedly a Greek citizen) from a French distributor into (Greece).

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How does manufacturing create the multiplier effect?

MrRissso [65]

Answer:

For every $1.00 spent in manufacturing, another $2.79 is added to the economy

Explanation:

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2 years ago

Franco's Pizzeria sells slices of pizza for $2.00. According to the market demand schedule and assuming ceteris paribus, what ha

Furkat [3]

Due to the increase in the price of the pizza, it is conclusive that the demand will decrease. Assume that the amount he will earn will stay the same and it is the product of the number of pizza and the price, the choice that would satisfy this is the third choice.

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3 years ago

Navajo Corporation traded a used truck (cost $25,000, accumulated depreciation $22,500) for a small computer worth $4,125. Navaj

bulgar [2K]

Answer:

Calculation of Gain or Loss:

Book Value of Truck:

= 25,000 - 22,500

= $2,500

Gain on Exchange:

= 4,125 - 2,500 - 625

= $1,000

Therefore, the journal entry is as follows:

Accumulated Depreciation A/c Dr. $22,500

computer A/c Dr. $3,125

To Truck $25,000

To Cash $625

(To record the Truck)

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4 years ago

Suppose that you have the following information for an economy:______.

galina1969 [7]

Answer:

Part 1. When real GDP is equal to $4,500, aggregate expenditure is equal to $4,600.

Part 2. When real GDP is equal to $5,000, aggregate expenditure is equal to $5,000.

Part 3. When real GDP is equal to $5,500, aggregate expenditure is equal to $5,400.

Explanation:

The aggregate expenditure (AE) can be calculated using the following formula:

AE = (A + (MPC * Y)) + PI + G + NX ………………. (1)

Where;

AE = aggregate expenditure = ?

A = Autonomous consumption = $500

MPC = Marginal propensity to consume = 0.80

Y = Real GDP

PI = Planned investment = $600

G = Government spending = $300

NX = Net exports = -$400

Based on the above, we can now proceed as follows:

Part 1. When real GDP is equal to $4,500, aggregate expenditure is equal to $ _____.

This implies that:

Y = Real GDP = $4,500

Substituting this and other values given above into equation (1), we have:

AE = ($500 + (0.80 * $4,500)) + $600 + $300 - $400 = $4,600

Therefore, when real GDP is equal to $4,500, aggregate expenditure is equal to $4,600.

Part 2. When real GDP is equal to $5,000, aggregate expenditure is equal to $ _____.

This implies that:

Y = Real GDP = $5,000

Substituting this and other values given above into equation (1), we have:

AE = ($500 + (0.80 * $5,000)) + $600 + $300 - $400 = $5,000

Therefore, when real GDP is equal to $5,000, aggregate expenditure is equal to $5,000.

Part 3. When real GDP is equal to $5,500, aggregate expenditure is equal to $ _____.

This implies that:

Y = Real GDP = $5,500

Substituting this and other values given above into equation (1), we have:

AE = ($500 + (0.80 * $5,500)) + $600 + $300 - $400 = $5,400

Therefore, when real GDP is equal to $5,500, aggregate expenditure is equal to $5,400.

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3 years ago

Tom Jordan is a manager for a McDonald's restaurant. Many of his key responsibilities include analyzing data and making key deci

Ksivusya [100]

Answer: Sensitive analysis

Explanation:

Sensitivity analysis this is a financial standard that is used to regulate how target variables can be affected based on changes in other variables which known as input variables. This is also known as what-if or simulation analysis. It is a way used in predicting an outcome of a decision under a known range of variables.

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3 years ago