Instructions:Answer the following questions. Make sure to number your answers when you upload your response. Why do economists include only final goods in measuring GDP for a particular year? Why don’t they include the value of stocks and bonds sold? Why don’t they include the value of used furniture bought and sold? Which of the following are included in this year’s GDP? Explain your answer in each Interest on an AT&T corporate bond.b. Social security payments received by a retired factory worker. The unpaid services of a family member in painting the family home. The income of a dentist.e. The money received by Smith when she sells her economics textbook to a book buyer. The monthly allowance a college student receives from Rent received on a two-bedroom apartment. The money received by Josh when he resells his current-year-model Honda automobile to Kim. The publication of a college textbook.j. A 2-hour decrease in the length of the workweek. The purchase of an AT&T corporate bond. A $2 billion increase in business inventories. The purchase of 100 shares of GM common stock. The purchase of an insurance policy. 3. Below is a list of domestic output and national income figures for a given year. All figures are in billions. The questions that follow ask you to determine the major national income measures by both the expenditure and income methods. The results you obtain with the different methods should be the same Personal consumption expenditures Net foreign factor incomeTransfer payments RentsStatistical discrepancyConsumption of fixed capital (depreciation) Social security contributionsInterest Proprietors’ income Net exports DividendsCompensation of employees Taxes on production and imports Undistributed corporate profits Personal taxesCorporate income taxes Corporate profits Government purchasesNet private domestic investment Personal saving$2454121482720133311162231821261956723320

The measure that depicts the final value of goods and services that are being produced in an economy…

Answered: Why do economists include only final…

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter5: An Introduction To Macroeconomics

Section: Chapter Questions

Problem 3TY

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Answer the following questions. Make sure to number your answers when you upload your response.

Why do economists include only final goods in measuring GDP for a particular year? Why don’t they include the value of stocks and bonds sold? Why don’t they include the value of used furniture bought and sold?

Which of the following are included in this year’s GDP? Explain your answer in each
1. Interest on an AT&T corporate bond.

b. Social security payments received by a retired factory worker.

The unpaid services of a family member in painting the family home.
The income of a dentist.

e. The money received by Smith when she sells her economics textbook to a book buyer.

The monthly allowance a college student receives from
Rent received on a two-bedroom apartment.
The money received by Josh when he resells his current-year-model Honda automobile to Kim.
The publication of a college textbook.

j. A 2-hour decrease in the length of the workweek.

The purchase of an AT&T corporate bond.
A $2 billion increase in business inventories.
The purchase of 100 shares of GM common stock.
The purchase of an insurance policy.

3. Below is a list of domestic output and national income figures for a given year. All figures are in billions. The questions that follow ask you to determine the major national income measures by both the expenditure and income methods. The results you obtain with the different methods should be the same

Personal consumption expenditures Net foreign factor income

Transfer payments Rents

Statistical discrepancy

Consumption of fixed capital (depreciation) Social security contributions

Interest Proprietors’ income Net exports Dividends

Compensation of employees Taxes on production and imports Undistributed corporate profits Personal taxes

Corporate income taxes Corporate profits Government purchases

Net private domestic investment Personal saving

$245

223

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