How do you calculate the consumption of fixed capital?
Consumption of fixed capital (depreciation) can be determined by: subtracting NDP from GDP. (Consider This) When making a capital stock and reservoir analogy, the: inflow from the river is gross investment. Economy A: gross investment equals depreciation Economy B: depreciation exceeds gross investment
What is the difference between flow and gross investment and depreciation?
flow, whereas gross investment and depreciation are stocks. flow, as are gross investment and depreciation. stock, as are gross investment and depreciation. stock, whereas gross investment and depreciation are flows.
What is the sum of national income and consumption of fixed capital?
If net foreign factor income is zero and there are no statistical discrepancies, the sum of national income and the consumption of fixed capital equals: gross domestic product. The amount of after-tax income received by households is measured by:
What was the total monetary value of all final goods and services produced in a particular country in 2010?
Suppose the total monetary value of all final goods and services produced in a particular country in 2010 is $500 billion and the total monetary value of final goods and services sold is $450 billion.
Why is there a difference between nominal and real GDP?
In comparing GDP data over a period of years, a difference between nominal and real GDP may arise because: the price level may change over time. In comparing GDP data over a period of years, a difference between nominal and real GDP may arise because: the price level may change over time.
What is GDP growth?
the sum of all monetary transactions involving final goods and services that occur in the economy in a year. The growth of GDP may understate changes in the economy's economic well-being over time if the: quality of products and services improves.
What is real GDP?
Real GDP is: the nominal value of all goods and services produced in the domestic economy corrected for inflation or deflation. the nominal value of all goods and services produced in the domestic economy corrected for inflation or deflation. gross domestic product.
Does GDP understate output?
GDP will tend to increasingly understate the level of output through time. The total amount of income earned by U.S. resource suppliers in a year, plus taxes on production and imports, is measured by: national income.