Ask Microeconomics Expert

Although the country produced several types of commodities (goods and services) in the year 2003. but this country's Central Statistics Otice has grouped such commodities into fbur broad categodes (A to D) for the purpose olestimating private consumption and government expenditures for the year 2003.

846_STATUS OF the ECONOMY.png

Further, during 2003, $20bn worth ofshares were purchased by the citizen ofthe country. Total corporate prcfits durjng the year were $90bn. Additionally, $200bn was paid as rent, and tbe capital eamed an interest of$8obn in that year.The government also spcnt $5bo on social-securiry benefits, and provided $20bn ofsubsidies to the poor during this year. The indirect taxes contributed $30bn to the government rcvenues and $40bn was paid by the households to the govemment, as direct taxes, during this year.

The wages and salaries for this yeaf amounted to $200bn, and the country imported $40bn worth olgood and services (All prices are in 2003 dollars.) lor the year 2008, the government's dircct ta,xation revenue was $40bn. The govemment spent $20bn on social-security benefits. The net exports for dris year amounted to $0 (all prices are in 2008 dolltrs). Other particulats lor 2008 (at 2008 prices) include:

Govemment productive expenditure  $200bn
Privateconsumptionexpenditure       $400bn
lnterest on capital                        $180bn
Tndirect taxes                             $50bn
Gross investment                         $l00bn
Co.porafe prohts                          $50bn
Wases/salaries                            $260bn

. National lncome data for the year 2013 is shown below.

1217_STATUS OF the ECONOMY1.png

. While it is dilficult to precisely predict future economic glowth' the country's leading economists believe that ifno measures are taken to rcvitalize the economy now (that is' in 2013), the economy will begin to contract and that the futler effect ofsuch contraction will become evident in the year 2018. Various estimates for the year 2018 (al 2018 prices) are:

74_STATUS OF the ECONOMY2.png

 

. The CDP deflators for the years 2003, 2008, and 2012 ate 86, 90, and 100, respectively lf no investment is made in 2013, the estimated deflator for the year 2018 is expected to be 150.

. lf however an investment is made (in Proposal A or Proposal B) in 2013, the real GDP for 2018 (expressed in 2013 dollars) would be $800bn in the case ofProposal A and $820bn in the case ofProposal B. Due to slightly different economic dynamics associated with these two proposals, the cotesponding GDP deflators, for the year 201 8, would be | 60 and 170, respectively.

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M9716736
  • Price:- $30

Priced at Now at $30, Verified Solution

Have any Question?


Related Questions in Microeconomics

Question show the market for cigarettes in equilibrium

Question: Show the market for cigarettes in equilibrium, assuming that there are no laws banning smoking in public. Label the equilibrium private market price and quantity as Pm and Qm. Add whatever is needed to the mode ...

Question recycling is a relatively inexpensive solution to

Question: Recycling is a relatively inexpensive solution to much of the environmental contamination from plastics, glass, and other waste materials. Is it a sound policy to make it mandatory for everybody to recycle? The ...

Question consider two ways of protecting elephants from

Question: Consider two ways of protecting elephants from poachers in African countries. In one approach, the government sets up enormous national parks that have sufficient habitat for elephants to thrive and forbids all ...

Question suppose you want to put a dollar value on the

Question: Suppose you want to put a dollar value on the external costs of carbon emissions from a power plant. What information or data would you obtain to measure the external [not social] cost? The response must be typ ...

Question in the tradeoff between economic output and

Question: In the tradeoff between economic output and environmental protection, what do the combinations on the protection possibility curve represent? The response must be typed, single spaced, must be in times new roma ...

Question consider the case of global environmental problems

Question: Consider the case of global environmental problems that spill across international borders as a prisoner's dilemma of the sort studied in Monopolistic Competition and Oligopoly. Say that there are two countries ...

Question consider two approaches to reducing emissions of

Question: Consider two approaches to reducing emissions of CO2 into the environment from manufacturing industries in the United States. In the first approach, the U.S. government makes it a policy to use only predetermin ...

Question the state of colorado requires oil and gas

Question: The state of Colorado requires oil and gas companies who use fracking techniques to return the land to its original condition after the oil and gas extractions. Table 12.9 shows the total cost and total benefit ...

Question suppose a city releases 16 million gallons of raw

Question: Suppose a city releases 16 million gallons of raw sewage into a nearby lake. Table shows the total costs of cleaning up the sewage to different levels, together with the total benefits of doing so. (Benefits in ...

Question four firms called elm maple oak and cherry produce

Question: Four firms called Elm, Maple, Oak, and Cherry, produce wooden chairs. However, they also produce a great deal of garbage (a mixture of glue, varnish, sandpaper, and wood scraps). The first row of Table 12.6 sho ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As