Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Macroeconomics Expert

Problem:

Consider an economy which comprises of the coal producer, steel producer, and some households. In a given year, the coal producer creates 15 tons of coal and sells it at $5 per ton. The coal manufacturer pays $50 in wages to households. The steel manufacturer uses 25 tons of coal as the input to manufacture, all bought at $5 per ton. Of this, 15 tons are from domestic coal producer and 10 tons are imported. The steel manufacturer manufactures 10 tons of steel and sells it at $20 per ton. Domestic households purchase 8 tons and 2 tons are exported. The steel manufacturer pays $40 in wages. All profits made by the domestic manufacturers go to domestic households.

Required:

a. Compute GDP by using each of the three approaches.

b. Compute the current account surplus and GNP. If coal manufacturer is instead owned by foreigners, what is GNP?

Macroeconomics, Economics

  • Category:- Macroeconomics
  • Reference No.:- M914021

Have any Question? 


Related Questions in Macroeconomics

In what ways have financial innovations affected the demand

In what ways have financial innovations affected the demand for money?

People who get old still need income in their later life

People who get old still need income in their later life, but they may wish to "retire" from active employment. What are their options and what, if anything, should government do? Discuss the design of pensions and incom ...

Suppose that central high school has preferences that can

Suppose that Central High School has preferences that can be represented by the utilityfunctionU(C,X) =CX2. Let us try to determine how the various plans described inthe previous problem will affect the amount that C.H.S ...

Pick a product or service you use in your everyday life and

Pick a product or service you use in your everyday life and describe the market for this product. For this paper we will use the UBER driving service. Please make sure to address the following questions: 1. What factors ...

If you are investing 500000 today in a company that is

If you are investing $500,000 today in a company that is promising to pay $1,000,000 at the end of 20 years, what is your expected rate of return for this investment? 50.2% 4.35% 12% 10% 3.53% 20%

Economic article analysisplease have west coast time

Economic Article Analysis Please have west coast time cailfornia time. Plagrism free, orignal work, and refs. APA format double space. This is Macroecomics class. Prepare a 1 - 2 page research paper about current macro-e ...

Assume that the consumption schedule for a private open

Assume that the consumption schedule for a private open economy is such that consumption C = 20 + 0.80Y. Assume further that planned investment Ig and net exports Xn are independent of the level of real GDP and constant ...

Sam runs a shoeshine stand at the airport sam has no skills

Sam runs a shoeshine stand at the airport. Sam has no skills, no job experience, and no alternative employment.Entrepreneurs in the shoeshine stand business earn $12,000 a year. Sam pays the rent of $1,500 a year, and hi ...

Suppose there are two types of consumers type a and type b

Suppose there are two types of consumers: Type A and Type B. The demands for a monopolist's product for each type of consumers are given by: Type A : Q=100-4P Type B: Q=60-P Assume that marginal cost of production is con ...

Suppose the government raises its revenue by a net tax of

Suppose the government raises its revenue by a net tax of 25% on income, t = 0.25, the marginal propensity to consume out of disposable income is 0.8, and the government has an outstanding public debt of 1,500. The auton ...

  • 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

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro