Question
a.In the country of Hypothetica, we have the following information for the year 2015: *Consumption totalled $2 billion, but 25% of this total consisted of
a.In the country of Hypothetica, we have the following information for the year 2015:
*Consumption totalled $2 billion, but 25% of this total consisted of goods which were initially sold in 2014.
*A total of $250 million worth of new housing stock was sold.
*Labour wage income was $150 million.
*Businesses invested $100 million dollars in new capital (i.e. machinery) stock.
*Businesses also bought $200 million dollars worth of company shares on the stock exchange.
*Foreigners with working visas living in foreign-only households bought $100 million worth of locally made goods and services.
*The government spent $500 million building roads.
*Hypothetica is a closed economy, thus they are no exports and imports.
(i)Calculate and explain how you obtained the figure (i.e. what did you count, and what did you exclude) for Hypothetica's consumption in 2015
(ii)Calculate and explain how you obtained the figure (i.e. what did you count, and what did you exclude) for Hypothetica's investment in 2015
(iii)What was Hypothetica's GDP in 2015 using the expenditure method? Explain your answer
I Need to mark check my answers, if you could answers these questions so I could refer back to it when checking my work
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started