Q1. a) The T-value is 3.5 and the P-value is 0.001. The chance of an association between Expend and Number of this magnitude occurring just by chance is around 1 in 1000. So we very strongly suspect that there really is an underlying association. b) The average or expected monthly expenditure on extras this year is $12.26 for customers who did not take any options last year. For every option the customer took last year you can add another $2.79 to this. c) The prediction equation is not very accurate
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REAL GDP IN THE U.S. (IN BILLIONS) 2004-2013 17,000.0 16,000.0 15,000.0 14,000.0 13,000.0 12,000.0 REAL GDP VALUE 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Since the two year drop in 2008 and 2009, real GDP has risen every year by at least 1.5%. This indicates the continued development and purchase of new domestic products, contributing to a healthier economy. The United States has seen growth for four straight years, and is going on it's fifth now. While its growth hasn't
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Fiscal Policy Fiscal Policy The United States’ deficit, surplus, and debt have had and are currently continuing to have a profound effect on the economy of this country. Although the federal government could play more of a role in boosting exports through tax reform and training assistance, some industries are staging a comeback on their own without help from Washington, because of improving marketplace trends. Taxpayers and Unemployed Individuals The United States' deficit, surplus, and
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the future of the gross domestic product. The GDP is very important because it measures the condition or the status of a country’s economy. It signifies the monetary value of all goods and services within a time span of a year. The compilation of this data amount is considered to be the most reliable of financial statistics. This data is used to determine if the U.S. economy is growing more quickly or more slowly than the quarter or the year before. GDP is also used to compare the size and growth
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profit to firm owners. GDP equals the total amount spent by households in the market for goods and services. It also equals the total wages, rent, and profit paid by firms in the markets for the factors of production. 2. Why is it desirable for a Country to have GDP? Give an example of something that would raise GDP and yet be undesirable It is desirable for a country to have a large GDP (other things equal) because people could enjoy more goods and services. But GDP is not the only important
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Accounting Principles: GDP is measured using 2 separate approaches: 1) Expenditure approach: the amount of money you pay someone to do a job 2) Factor Income approach: the amount of money someone earn to do a job -Even though they are independent approaches to the measurement of prod., theoretically they are equivalent --> lead to same answer. -Any difference that arises between the 2 approaches is called statistical discrepancy or residual error of estimate= well under 1% of GDP. -to produce a single
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3% 4% 5% 6% Investment at Interest $80 70 60 50 40 Potential Real GDP $350 350 350 350 350 Actual Real GDP at Interest $390 370 350 330 310 4. Answer the following questions: What is the equilibrium interest rate in Roolanda? __________________ What is the level of investment at the equilibrium interest rate? ______________ Is there either a recessionary output gap (negative GDP gap) or an inflationary output gap (positive GDP gap) at the ongoing equilibrium interest rate and, if either, what
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WWII: in the western world, trade boomed and GDP rose constantly at a 2-3% rate… • Globalization (economic integration) was estimated to be 10%; today it is 50% (by some measures) and still rising • Global companies have arisen to respond to global market demands and opportunities, global competitors have displaced local ones 2-4 Growth of world GDP Figure 1.1 Growth of Real World GDP, 1975–2005 500 – 450 – 400 – 350 – Volume 300 – 250 – World GDP ~$70 Trillion today World population 7,1 Billion
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Domestic Product 1. The real GDP for 2009 13,973.7 a) What does the GDP tell us? The GDP gives information regarding the country’s economy in regards to total money value on all goods, and services produced over any given period. b) How did GDP change from 2008? In the first and second quarter, GDP increased. In the third quarter, GDP started decreasing while exports and imports of goods and services increased. In the fourth quarter, the real GDP decreased, as well as exports
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final goods and services produced in the domestic territory of a country during an accounting year. General Economics: National Income in India, Concept & Measurement 6 Gross Domestic Product at Constant price and Current price • GDP can be estimated at current prices and at constant prices. If the domestic product is estimated on the basis of the prevailing prices it is called gross domestic product at current prices. General Economics: National Income in India,
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