Which of the following represents the national spending approach to splitting GDP? Y = C + I + G + NX Y = C + I + G – NX Y = C + I + G Y = C + G + NX – M

Answers

Answer 1
Answer:

Answer:

Y = C+ I +G +NX

Explanation:

We know,

The national spending approach is also known as the expenditure approach. According to the expenditure approach, all the goods and services that make up the gross domestic product will be applied to individual consumption, investment, and government expenditure. It also modifies the net exports and imports of a country. Therefore, option A is the correct answer as the expenditure approach, Y = C+ I +G +NX.

Answer 2
Answer:

Final answer:

The national spending approach to splitting GDP is represented by the equation Y = C + I + G + (X - M).

Explanation:

The national spending approach to splitting GDP is represented by the equation Y = C + I + G + (X - M). This equation includes consumption (C), investment (I), government spending (G), and net exports (X - M). Net exports are calculated by subtracting imports (M) from exports (X).

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Related Questions

On December 31, 2021, Interlink Communications issued 5% stated rate bonds with a face amount of $113 million. The bonds mature on December 31, 2051. Interest is payable annually on each December 31, beginning in 2022. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $). Determine the price of the bonds on December 31, 2021, assuming that the market rate of interest for similar bonds was 6%.Table values are based on:n = 30i = 6%Cash Flow Amount Present ValueInterest $111,300,000 $74,454,240Principal $100,000,000 $13,137,000Price of bonds $87,591,240
Attraction Corporation produces specially machined parts. The parts are produced in batches in one continuous manufacturing process. Each part is custom produced and requires special engineering design activity (based on customer specifications). Once the design is completed, the equipment can be set up for batch production. Once the batch is completed, a sample is taken and inspected to see if the parts are within the tolerances allowed. Thus, the manufacturing process has four activities: engineering, setups, machining, and inspecting. In addition, there is a sustaining process with two activities: providing utilities (plantwide) and providing space. Costs have been assigned to each activity using direct tracing and resource drivers: Engineering $1,000,000 Setups 900,000 Machining 2,000,000 Inspection 800,000 Providing space 250,000 Providing utilities 180,000 Activity drivers for each activity have been identified and their practical capacities listed: Machine hours 25,000 Setups 200 Engineering hours 5,000 Inspection hours 2,500 The costs of facility-level activities are assigned using machine hours. What is (are) the product-level activity(ies)? a.engineering b.inspecting c.setups d.All of these choices are correct.
Sauder Corporation reports the following information: Net income $380,000 Depreciation expense 70,000 Increase in accounts receivable 30,000 Sauder should report cash provided by operating activities of A. $340,000. B. $280,000. C. $420,000. D. $480,000.
Answer the question on the basis of the following production possibilities data for Gamma and Sigma. All data are in tons.On the basis of the given information a. Gamma should export both tea and pots to Sigma b. Sigma should export tea to Gamma and Gamma should export pots to Sigma c. Gamma should export tea to Sigma and Sigma should export pots to Gamma d. Gamma should export tea to Sigma, but it will not be profitable for the two nations to exchange pots
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Cyclical unemployment arises when:______. a. the agriculture sector completes the cycle of planting, cultivating, and harvesting the nation's food supply.
b. labor unions strike for higher wages.
c. the business cycle enters an expansionary phase.
d. business activity in the macroeconomy declines.

Answers

Answer:

D

Explanation:

types of unemployment

structural unemployment is an unemployment that occurs as a result of changes in the economy. These changes can be as a result of changes in technology, polices or competition. Structural unemployment tends to be permanent.  

The geologist lost his hob permanently due to increase in wages (polices)

Frictional unemployment:  the period of time a person is unemployed from the period he leaves his current job and the time he gets another job. Eg. when a real estate agent who leaves a job in Texas and searches for a similar, higher-paying job in California.

Voluntary unemployment: e.g. worker at a fast-food restaurant who quits work and attends college.

Cyclical unemployment: it occurs as a result of fluctuations in the economy. Unemployment would be high in a downturn and low in a boom  

Final answer:

Cyclical unemployment arises when business activity in the macroeconomy declines. It is directly linked to the ups and downs in the business cycle. When the economy moves into a recession, cyclical unemployment increases as businesses lay off workers.

Explanation:

Cyclical unemployment arises when: business activity in the macroeconomy declines. This is option D. It refers to the unemployment which is caused by the ups and downs in the overall economy, a phenomenon known as the business cycle. When the economy enters into a recession or contractionary phase, overall demand decreases, and businesses lay off workers as a result leading to an increase in unemployment. This is known as cyclical unemployment.

On the other hand, when the economy is in an expansionary phase, businesses are typically doing well and unemployment levels decrease as businesses hire more workers to meet the increased demand. Therefore, cyclical unemployment is directly related to the health of an economy.

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James, Inc., has purchased a brand new machine to produce its High Flight line of shoes. The machine has an economic life of 5 years. The depreciation schedule for the machine is straight-line with no salvage value. The machine costs $540,000. The sales price per pair of shoes is $77, while the variable cost is $29. Fixed costs of $245,000 per year are attributed to the machine. The corporate tax rate is 22 percent and the appropriate discount rate is 9 percent. What is the financial break-even point? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16)

Answers

Answer:

3,074 units sold or total revenue of $236,698 per year

Explanation:

cost of machine $540,000

depreciation expense per year = $540,000 / 5 = $108,000

contribution margin per unit sold = $77 - $29 = $48

we generally calculate the financial break even point of a business by using the following formula:

= EBIT × (1 - interest expense) × (1 - tax rate) - preferred dividends

But when we are dealing with projects, the financial break even point is the sales level at which the project's NPV = $0. If the sales level is lower, then the project will be rejected, and if the sales level is higher, then it should be accepted.

using an annuity formula, the free cash flow per year needed for the NPV = $0 is $540,000 / 3.8897 (PV annuity factor, 9%, 5 periods) = $138,828.19

$138,828.19 = {[(unit sales x $48) - $108,000] x 0.78} + $108,000

$30,828.19 = [(unit sales x $48) - $108,000] x 0.78

$39,523.32 = (unit sales x $48) - $108,000

$147,523.32 = unit sales x $48

unit sales = $147,523.32 / $48 = 3,073.40 units ≈ 3,074 units sold

Final answer:

The financial break-even point is approximately 5,104 units.

Explanation:

The financial break-even point can be calculated by determining the number of units that need to be sold in order to cover the fixed costs. First, we need to calculate the contribution margin per unit, which is the sales price per unit minus the variable cost per unit. In this case, it is $77 - $29 = $48. Next, we divide the fixed costs by the contribution margin per unit to find the break-even point in units. Using the formula: Break-even point (in units) = Fixed costs / Contribution margin per unit. Plugging in the numbers, we get: $245,000 / $48 = 5,104.17. Therefore, the financial break-even point is approximately 5,104 units.

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You and a coworker, Nicola, disagree over how to address a problem your team has encountered. You often don’t understand Nicola’s arguments and have the opinion that she is not always well informed. However, this is an important decision, and you know the situation requires you to consider all options before proceeding. 1. What can you do to make sure you understand Nicola’s argument?
Check all that apply.
a. Challenge Nicola’s position.
b. Keep an open mind.
c. Separate facts from opinions.
d. Assume Nicola is incorrect.

Answers

Answer:

The correct answer is letter "B" and "C": Keep an open mind; Separate facts from opinions.

Explanation:

At the moment of solving different-point-of-view issues, it is important to be open-minded, otherwise, we could only remain with our opinion discarding others' critic point of view that could be useful at the moment of taking decisions. Besides, it does not matter if other individuals are biased since we can separate the facts from those points of view. Separating the facts implies analyzing what others have to say in deep regardless of what their emotions can be about that matter. It implies subtracting an objective idea from a subjective point of view.

Final answer:

To understand Nicola's argument, you should keep an open mind, separate facts from opinions, and instead of jumping to conclusions, enhance your understanding by asking clarifying questions.

Explanation:

To make sure you understand Nicola's argument, you can adopt the following ways:

  • Keep an open mind: Try not to be prejudiced about Nicola based on your past interactions. Listen to what she is saying without preconception or bias. You might find even if you don't agree with everything, there could be useful elements in her suggestions.
  • Separate facts from opinions: It's essential to distinguish between what Nicola presents as fact and what is purely opinion. This can significantly aid in legitimising or debunking her points in a fair and logical manner.
  • You should not assume Nicola is incorrect, nor should you immediately challenge Nicola's position. Instead, ask clarifying questions to gain a full understanding and a broader perspective and contribute in a more useful manner to the problem-solving process.

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A firm facing a price of $15 in a perfectly competitive market decides to produce 100 widgets. If its marginal cost of producing the last widget is $12 and it is seeking to maximize profit, the firm should

Answers

Answer:

Produce more widgets.

Explanation:

Given the price charge by the competitive firm is = $15

The unit produced = 100

The marginal cost of the last unit =  $12

The firm should produce more widget because in the competitive market the firm charge the price that is equal to MC. Moreover, in the given question the price is greater than the marginal cost. Therefore, the firm should produce more widgets in order to reach the condition “P=MC”.

A company wishes to raise $27 million by issuing 15-year semi-annual coupon bonds with face value of $1,000 and coupon rate of 6.60 percent. The bonds will have a yield to maturity of 7.70 percent. Determine the minimum number of these bonds the company needs to issue to raise the desired amount of money.

Answers

Answer:

We first need to find out the present value of each $1,000 bond and then we can figure out how many of these bonds we require to raise $27 million

The n of payments is 15*2 because semi annual payments for 15 years so our N will be 30

The YTM is 7.70/2 because of semi annual payments = 3.85

The Face value is of 1,000 so FV= 1,000

The payments our 1000*0.066=66 divided by 2 because semi annual payments so PMT= 33

We will put these values in a financial calculator to compute the PV of a $1000 bond.

PV= 903

So now we know that the company can get $903 for each $1,000 bond as the bonds present value is 903.

Now in order to find out how many bonds need to be issued to raise 27 million we will divide 27 million by 903, as 903 is the amount we can raise by issuing a single bond.

27,000,000/903=29,900.3 so 29,901

The company will have to issue 29,901 bonds of face value $1,000 to raise $27 million

Explanation:

A company performs $10,000 of services and issues an invoice to the customer using the accrual method what’s the correct entry to record the transaction?

Answers

Based on the accrual method, the correct entry for $10,000 worth of services would be a debit to accounts receivable for $10,000 and a credit to Sales revenue for $10,000.

Why is this the correct entry?

The company has performed a certain service for a customer and hasn't been paid for it. The customer therefore owes the company which makes them an account receivable.

The $10,000 will be considered revenue by the company so they will credit the revenue account. Accounts Receivables are assets so this account will be debited.

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Final answer:

The company should debit (increase) the Accounts Receivable account by $10,000 and credit (increase) the Service Revenue account by $10,000. This follows the accrual method of accounting, in which revenues and expenses are recorded when they are earned and incurred, respectively.

Explanation:

The correct entry to record this transaction, using the accrual method, involves two accounts: Accounts Receivable and Service Revenue. Here is the step-by-step process of recording this transaction.

  1. Debit (increase) the Accounts Receivable account by $10,000. This step is done because the company has provided a service and is now entitled to receive money (accounts receivable) from the customer.
  2. Credit (increase) the Service Revenue account by $10,000. The company has earned revenue due to the service that they performed. Revenue increases by credits in the accounting equation.

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