Purchase Solution

# goods and services produced by workers

Not what you're looking for?

I) A)Define what is meant by gross domestic product and explain how it is differ from 'net' domestic product , and gross national product ,B) explain and discuss the following four ways of looking at GDP: 1) output measure 2) input measure 3) uses of income measure 4) expenditure measure.

II) A) explain the two types of price indices ( Laspeyres, or "base-weighted", And "paasche", or current-weighted. B) Explain what we mean when we say a price index is "Chained"; and C) discuss some of the more commonly-used indices.

III) In the so-called "electric IS-LM" model, explain; A) the meaning of the "IS" curve and why it is downward-sloping; And B) the meaning of "LM" curve and why it is upward-sloping.

IV) A) explain what we mean by "money", and taking a " narrow" definition of this measure, how a fractional-reserve banking system can take a \$1000 of "high-powered" money - like cash - and expand the overall money supply by some multiple of that amount; and B) why can this "money multiplier " be at time quite unpredictable ?

##### Solution Summary

This answer provides you an excellent discussion on goods and services produced by workers. The goods and services produced by workers are determined.

##### Solution Preview

I) A)Define what is meant by gross domestic product and explain how it is differ from 'net' domestic product , and gross national product ,B) explain and discuss the following four ways of looking at GDP: 1) output measure 2) input measure 3) uses of income measure 4) expenditure measure.
The gross domestic product is the total market value of goods and services produced by workers and capital within a country. It is a measure of the economic production of a country in financial capital terms over a period of time.
When the depreciation of fixed assets or inventories is subtracted from the gross domestic product we get the net national product. The net domestic product gives us the products that are available for consumption or adding to the country's wealth.
The output approach means that the output of all firms is added up to arrive at the gross domestic product. This approach is also called the product approach; however, even the services are included in the gross domestic product.
The input approach means that the inputs of all factors of production are added to arrive at the gross domestic product. However, intermediate inputs are subtracted.
The income measure to gross domestic product is to sum up all income earned. The gross domestic income should equal the gross domestic product. The purpose of using this approach is to find out the total factor income and identify the component of taxes less subsidies. The compensation of employees, surplus of incorporated businesses, and the surplus of unincorporated businesses can be examined separately.
The expenditure approach is to sum up all money used to buy things. The use of measuring expenditure is that it is a different approach to measuring production. Since, large sectors of ...

Solution provided by:
###### Education
• BSc , University of Calcutta
• MBA, Eastern Institute for Integrated Learning in Management
###### Recent Feedback
• "I read your comments, and thank you for this feedback. Do I need to find other studies that applied this methodology Ive used? That's where I'm stuck at."
• "Thank you kindly sir. "
• "Excellent and well explained. --Thank you kindly. "
• "Awesome notes. I appreciate you."
• "I have the follow-up project and I will assign that to you very soon. "

##### Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

##### Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

##### Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

##### Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

##### Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.