2. Personal income and expenditures data There are various categories people spend their personal income on which include goods, services, and taxes. Specifically, in the United States, the second largest category personal income is spent on is

2. Personal income and expenditures data There are various categories people spend their personal income on which include goods, services, and taxes. Specifically, in the United States, the second largest category personal income is spent on is

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter5: Measuring A Nation's Income

Section: Chapter Questions

Problem 12PA

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2. Personal income and expenditures data
There are various categories people spend their personal income on which include goods, services, and taxes.
Specifically, in the United States, the second largest category personal income is spent on is

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Bureau of Labor Statistics published data on Consumer Expenditure Surveys useful for expansion for policymakers, academics, and consumers who want to analyze or evaluate public policy.

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Suppose that an economy consists of only two individuals. Jeremy has $1150 available to spend on goods. He decides to purchase $750 worth of produce from Michele in the current month. No other economic activity takes place during the current month. Using this information, answer the questions. For the current month, what is the economy's income? $ For the current month, what is the economy's expenditure? $ In an economy, how are income and expenditure related? O Income is less than expenditure. Income is greater than expenditure. They are unrelated. O They are equal.
What is personal income? What are the sources of personal income
1. What relationship does the income expenditure model represent? Why is it used?
What is the type of consumption of household spending which is independent
Which one of the following is NOT a possible relationship between income and spending Select one: a. Income equals the level of spending b. Spending is higher than income c. None is a relationship d. Income is higher than spending
If household spend $105 billion on goods and $95 billion on services. How much in revenues do businesses receive in the product market?
In a simple economy, calculate gross domestic product using the following figures. (Not all variables need to be used, an extra variable may be given.)a. Calculate by spending approach.b. Calculate with income approach. Consumption 9500 Investment 3000 Wear 1750Profits 2400Exports 850Payments to employees 11500Government purchases 3200 Direct Taxes 1200Savings 1600 Imports 900
Show expenditure as well as income method...
The table below gives some of the items in the U.S. National Income and ProductAccounts in 1995.ItemAmount(trillions ofdollars)Consumption expenditure 4.97Investment 1.14Government expenditures 1.37Net exports 0.08Wages 4.20Interest, rent, and profit 1.68Depreciation 0.89a) Use the expenditure approach to calculate U.S. GDP in 1995.b) Use the income approach to calculate U.S. net domestic product at factor cost in
What is the relationship between income and consumption?
3. Categories of expenditures Shen and Valerie Ferrari live in Swarthmore, PA. Valerie's father, Antonio, lives in Sweden. For each of the following transactions that occur in their lives, identify whether it is included in the calculation of U.S. GDP as part of consumption (C), investment (I), government purchases (G), exports (X), or imports (M). Check all that apply. Transaction Shen's employer upgrades all of its computer systems using U.S.-made parts. Valerie gets a new video camera made in the United States. The state of Pennsylvania repaves highway PA 320, which goes through the center of Swarthmore. Valerie's father in Sweden orders a bottle of Vermont maple syrup from the producer's website. Shen buys a bottle of Italian wine. OOOoo 0 I 00000 G 00 000 X 00000 M OC 0 0 0 0
If we want to calculate total spending in the economy, then we will include all of the following except: O spending by firms on new capital equipment spending by households on newly built houses government spending on new goods and services tax revenue collected by the government