12. a. determining gdp
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12. a. determining gdp

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12. a. determining gdp 12. a. determining gdp Document Transcript

  • Determining GDP A. Indicate whether each of the following would or would not be included in GDP and why. 1. The sale of a house, previously occupied. ____________________________________________________________________________________________________________________ 2. The services of a real estate agent. ___________________________________________________________________________________________________________________ 3. The purchase of shares of common stock. ___________________________________________________________________________________________________________________ 4. The labour performed by a homemaker. ___________________________________________________________________________________________________________________ 5. The labour performed by a nanny. ___________________________________________________________________________________________________________________ 6. A monthly cheque from home received by a student to pay expenses. ___________________________________________________________________________________________________________________ 7. A trip to Florida by a Canadian. ___________________________________________________________________________________________________________________ 8. A visit to Quebec City by a group of American businesspeople. ___________________________________________________________________________________________________________________ 9. An income tax rebate cheque received by a Canadian taxpayer. ___________________________________________________________________________________________________________________ 10. An unemployment insurance cheque received by a laid off worker. ___________________________________________________________________________________________________________________ B. On the back you are asked to ‘calculate’ two different approaches to gross domestic product – the Income Approach and the Expenditure Approach. Each should result in the same figure. The Income Approach is: GDP = C + I + G + (X – M). Therefore, GNE (Gross National Expenditure) should use the remaining figures. Statistical Discrepancy is the official adjustment factor for the two accounts and is used to ensure equality between the two. In this case, one calculation will require a discrepancy of -5 and the other a discrepancy of +5 to make the two equal.
  • 1. The following are hypothetical national accounting figures for a country. Calculate the Income Approach and the Expenditure Approach for GDP. All figures are in billions. Interest $70 Wages and Salaries $460 Profit 55 Exports 50 Investment 125 Imports 20 Government Expenditure 190 Capital Consumption Allowance 100 Rent 40 Net Farm Income 20 Indirect Taxes 85 Consumption 475 GDP Expenditure Approach GDP Income Approach Item Value Item Value _________________________ $_________ _________________________ $________ _________________________ __________ _________________________ _________ _________________________ __________ _________________________ _________ _________________________ __________ _________________________ _________ _________________________ __________ _________________________ _________ _________________________ __________ _________________________ _________ _________________________ __________ _________________________ _________ Statistical Discrepancy __________ Statistical Discrepancy __________ Total $__________ Total $__________