If in the process of calculating gdp, the market value of all intermediate goods is added to the market value of all final goods, this would: overstate the actual value of GDP.
<h3>What is meant by GDP?</h3>
This is the term that has to do with the Gross domestic product. It is the amount of goods and services that are produced in a given economy at a particular period of time which could be in one year.
We have to conclude that If in the process of calculating gdp, the market value of all intermediate goods is added to the market value of all final goods, this would: overstate the actual value of GDP.
Read more on GDP here: brainly.com/question/1383956
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Answer:
<em>The answer will be 136.11
</em>
Explanation:
Because since the cost of the basket in 2005 is = (3x20) + (4 x 12) = 108; And the cost of basket in 2006 is = (3x25) + (4 x 18) = 147
To calculate the CPI,
- <em>Put a sampling of product prices from a previous year. </em>
- <em>Then, put the current prices of the same items together. </em>
- <em>Divide the current total prices by the old prices and then subtract the sum by 100.</em>
The Consumer Price Index (CPI) for 2006 = <em>(147/108) x 100 = 136.11</em>
Answer:
I. employees switching between companies
IV. interdependent consumer markets
Explanation:
Industry boundaries helps a business determine the areas in which they are competing, it also helps to identify competitors so a business can design a competitive strategy.
The industry boundary is determined as employees switch between companies. The companies talent moves to is more competitive.
Also industry boundary is determined by how interdependent the consumer market is.
Answer: Check attachment and explanation.
Explanation:
a. The question has been solved. Check the attachment.
b. LAKEVIEW COMPANY
Balance sheet (Partial)
December 31
Current liabilities
FICA Payable=$4800 + $4800= $9600
Charitable contribution payable = $2400
Withheld income tax payable = $6400
State and Federal unemployment tax payable = $560
Unearned rent revenue = $5700 - $3800 = $1900
Total current liabilities = $20860
Answer: Raises the levels of both productivity and income
Explanation:
In a closed Economy, there is no trade with the outside world.
That would mean that the GDP formula for their expenditure model will look like this,
Y = C + I + G
Where Y is (GDP)
C is consumption
I is investment and,
G is Government Spending
Investment is also known as Savings because it is the amount of Total income that is not spent after individuals CONSUME and the Government SPENDS,
I = Y - G - C.
When an economy SAVES MORE they are sacrificing consumption now for future consumption and saving more.
This means that there is more money to invest in Economic activities.
Since there is a higher Investment in Economic activities, we can expect higher CAPITAL STOCK which can drive Economic growth as it leads to greater productivity as well as greater income because the Economy is growing.
The Harrod-Domar model of economic growth speaks more on this.
