Assignment Instructions/ Description
EC2050 MyEconLab homework Questions:Which of the following is an example of consumption expenditure?
A. Peter buying stocks.B. Mary buying a house.C. United buying Dell PCs.D. Rachel buying a TV.
The table shows some data for an economy.If the base year is 2015, calculate the economy's nominal GDP and real GDP in 2016.Nominal GDP in 2016 is $600.Real GDP in 2016 is $135.
New U.S. home sales surgedPurchases of new U.S. homes surged in December and 2015 was the best year for housing since 2007. Existing-home sales also increased in the best year since 2006.
The inventory of existing homes on the market was smaller than demand.Source: Bloomberg, January 28, 2016
Where do sales and inventories of existing homes appear in the circular flow of expenditure and income?Explain how an increase in sales of existing homes and a low inventory of existing homes affects real GDP.
Sales and inventories of existing homes ______ in the circular flow of expenditure and income and ______ GDP.
A. appear as a flow of consumption expenditure from households to firms through financial markets; do not influence
B. are not part of current expenditure, so they do not appear; do not influence Your answer is correct.C.appear as a flow of investment from firms through goods markets to households; increaseD. appear as a flow of investment from households through factor markets; increase
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