0
Why the expenditure and factor income approaches for measuring GDP yield the same results?
Wiki User
∙ 16y ago
Because what goes in must come out.....
Wiki User
∙ 16y ago
Add your answer:
Earn +20 pts
What are the factor affecting aggregate Demand?
Consumption, Investment, Government Expenditure and Net Exports
Uses of national income?
Uses of National Income Data:- 1:National Income as a measure of economic growth - Estimates of national income at constant prices indicate economic growth of a country. 2:National Income as an indicator of success or failure of planning - If a country has adopted planning as a means of economic growth then national income data can help in assessing the achievements of planning. 3: Useful in estimating per capita income - Per capita income is obtained by dividing national income by total population of the country. 4:Useful in assessing the performance of different production sectors - Production units of a country are broadly classified into primary, secondary and tertiary sectors. These sectors generate factor incomes. The data on factor incomes generated by these sectors can be used to measure their relative contributions to national income. 5:Useful in measuring inequalities in the distribution of income - All individuals so not have the same income. It means national income is unequally distributed among people. The extent of inequality in a country can be measured from the national income data collected through the income distribution methods. 6:Useful in measuring standards of income - The expenditure method reveals consumption expenditure and investment expenditure. If the total consumption expenditure is divided by the total investment expenditure we get per capita consumption expenditure which indicates the average standard of living of the people of the country. 7:Makes international comparisons possible - We can compare the economies of any two countries on the basis of their national income data.
What are the factors that affect investment?
In a nutshell, the key determinants that affect investment are:The Keynesian Marginal Efficiency of Capital Theory, I=f(r)The Keynesian explanation if there is non ceteris paribus, I=f(all other factors)The Accelerator TheoryThe role of firms' profitsAnd then a collection of the other factors, being exchange rates et cetera.
What is the absorption approach to balance of payments?
Income of the nation (Y) or receipt from the expenditure on its final goods and services is Y =C+I+G+X Absorption A is a nation's total expenditure on domestic final goods and services. i.e. A = C+I+G+M And So, Y-A = X-M Or, B = Y-A, B = current account surplus, if net factor income is zero. Current Account deficit means absorption exceeds output. Now, dB = dY-dA Implies B will be improved only if output increases more to absorption. Balance of Payment policy instrument can be classified in two segment on the basis of their initial impact on the output or absorption. In order to change absorption without changing output, a policy must lead to replacement of foreign goods by domestic goods or vice-versa. e.g. devaluation or import restriction. This is expenditure switching policy. Policies that affect both income and absorption (e.g. fiscal and monetary policy) are expenditure reducing policy
What is the difference between real national income and nominal national income?
Real national income : the actual quantity of goods and services produced. the standard of living depends very much on the quantities of goods and services produced. Nominal national income : the money values of total output, total factor incomes and total expenditure. national income is measured in this way.
What are the factor affecting aggregate Demand?
Consumption, Investment, Government Expenditure and Net Exports
What is the most variable part of energy expenditure and the factor that you have the most control over?
Exercise-induced thermogenesis
What has the author William Scott Green written?
William Scott Green has written: 'The Religion Factor' 'Approaches to Ancient Judaism, Volume II' 'Approaches to Ancient Judaism'
What internal factor would minimize the risk in a budget forecast?
cut expenditure. will ensure, bubtget stays under control
What is a environmental factor that is associated with or results from the activities of living organism?
Biotic factor
Which factor is the frame reference for measuring how fast a car is traveling?
The car starting point
Which factor is the frame of reference for measuring how fast a car is traveling?
The car starting point
What is a factor in statistics?
A factor in statistics can be defined as a variable which will affect the results of an experiment. This is mainly an aspect which is independent.
What two basic approaches are used to factor expressions?
Look for recognizable patterns based on types of expressions. or guess and check.
Any factor in an experiment that affects the results of the experiment is?
variable
Can you define protocol?
explain the various factor to bee considered when measuring the performance of a HDD in a computer
How many mm in 1 tons?
mm- Millimeter is measuring factor when ton is weight. You can't answer that.
