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Econ 252 formulas Questions with Correct Answers (Grade A+)

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Econ 252 formulas Questions with Correct Answers (Grade A+)

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Econ 252 formulas Questions with Correct Answers (Grade A+)

Question 1: GDP (Expenditure Approach)

Answer: C + I + G + NX

Question 2: C

Answer: Consumption

Question 3: I

Answer: Investment

Question 4: G

Answer: Government Spending

Question 5: NX

Answer: Net Exports

Question 6: GDP (Income Approach)

Answer: Wages + Rent + Interest + Profit + Depreciation + Indirect Business Taxes

Question 7: Nominal GDP

Answer: (Current Year Quantities × Current Year Prices)

Question 8: Real GDP

Answer: (Current Year Quantities × Base Year Prices)

Question 9: Real GDP (using GDP Deflator)

Answer: (Nominal GDP / GDP Deflator) × 100

Question 10: GDP Deflator

Answer: (Nominal GDP / Real GDP) × 100

Question 11: Value Added

Answer: Sales Revenue - Cost of Intermediate Goods


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