ECON 248 Assignment 1 (version A) latest exam study review solution update fall winter 2022 Athabasca University

This study s oEurCceOwNas d2o4w8nvlo9aded by 100000857316795 from Cour sAeHsesroig.cnommoenn1t11-1A6-2022 16:32:14 GMT -06:00 January 25, 2019 https://www.coursehero.com/file/75545209/ECON -248-Assignment -1docx/ ECON 248 Assignment 1 (version A) latest exam stu dy review solution updat e fall winter 2 022 Athabasca University This assignment has a maximum total of 100 marks and is worth 10 percent of your total grade for this course. You should complete it after completing your coursework for units 1, 2, and 3. Answer each question clearly and concisely. 1. Use the data below to answer the questions that follow. (10 marks) Item Amount (in billions of dollars) Consumption expenditure 300 Government expenditure 99 Interest and investment income 31 Profit of corporations and government enterprises 54 Income from farms and unincorporated businesses 40 Gross investment 146 Exports 36 Imports 56 Wages, salaries, and supplementary labour income 275 Capital consumption allowance (depreciation) 50 Indirect taxes, less subsidies 75 a. Calculate net exports. Exports (36) – Imports (56) = Net Exports (-$20 billion) b. Use the expenditure approach to calculate GDP. Consumption expenditure 300 Government expenditure 99 Investment 146 Net exports -20 GDP = $525 billion c. Use the income approach to calculate GDP. Wages, salaries, and supplementary labour income 275 Other factor incomes 125 Net domestic income at factor cost 400 Indirect taxes less subsidies 75 Net domestic income at market prices 475 Depreciation 50 GDP $525 billion (1 mark) (2.5 marks) (2.5 marks) This study s oEurCceOwNas d2o4w8nvlo9aded by 100000857316795 from Cour sAeHsesroig.cnommoenn1t11-1A6-2022 16:32:14 GMT -06:00 January 25, 2019 https://www.coursehero.com/file/75545209/ECON -248-Assignment -1docx/ d. Calculate net domestic product (at factor cost). Wages, salaries, and supplementary labour income 275 Other factor incomes 125 Net domestic income at factor cost $400 billion e. Calculate net domestic income (at market price). Net domestic income at factor cost 400 Indirect taxes less subsidies 75 Net domestic income at market prices $475 billion (2 marks) (2 marks) 2. Consider the circular flow model for Doneville economy. In 2015, flow A was $53.0 billion, flow B was $31.0 billion, flow C was $13.0 billion, and flow E was $3.0 billion. (10 marks) Calculate the following (show and explain your work): a. GDP Consumption expenditure 31.0 Government expenditure 13.0 Investment 6.0 Net exports 3.0 GDP = $53.0 billion (5 marks) b. Investment expenditure Aggregate income (given) =Aggregate expenditure = GDP = $53.0 billion so: GDP 53.0 Consumption expenditure (31.0) Government expenditure (13.0) Net exports (3.0) Investment expenditure $6.0 billion (5 marks)