The purpose of this assignment is to distinguish between the two ways of calculating GDP (expenditures and income approaches) and how we progress from GDP to DI. B. real estate and financial assets such as stocks and bonds. Quantitatively, the government spending multiplier is the same as the investment multiplier. 12. The Government Spending Multiplier. A $1 increase in government spending will result in an increase in GDP equal to $1 times 1/(1-MPC). c. capital equipment, inventories, and structures, including household purchases of new housing. Government spending: 17% of U.S. GDP comes from spending by the government at both the federal (5-10%) and state (about 10-15%) levels. Gross Domestic Product (GDP) is one of the most widely used measures of an economy’s output or production. Q12. Correct answers: 2 question: For the purpose of calculating GDP, investment is spending on a. stocks, bonds, and other financial assets. b. real estate and financial assets. Investment spending may include buying machinery, inputs, infrastructure, land, etc. Changes in government spending have a similar impact on equilibrium GDP as changes in investment. d. capital equipment, inventories, and structures, excluding household purchases of new housing. For the purpose of calculating GDP, investment is spending on a. stocks, bonds, and other financial assets. The question now is what is the investment spending formula and how to calculate investment spending. You need to show the calculations and submit as a typed homework. The expenditure done on capital equipment for the purpose of economic activities is called investment spending. real estate and financial assets such as stocks and bonds. Here are the numbers for a hypothetical economy. capital equipment, inventories, and structures, including household purchases of new housing, stocks, bonds, and other financial assets. c. new capital equipment, inventories, and structures, including new housing. Homework-GDP calculations. It is also written as S = I. b. real estate and financial assets such as stocks and bonds. Expenditure Components of U.S. GDP; C is Personal C onsumption Expenditures : Also known as consumer spending, or the tally of all goods and services that consumers buy—from grocery items to health care coverage. Gross domestic product (GDP) is one of the most common indicators used to track the health of a nation's economy. D. capital equipment, inventories, and structures by businesses, plus household purchases of new housing. d. capital equipment, inventories, and structures, excluding household purchases of … 37. The calculation of a country's GDP … 39. For the purpose of calculating GDP, investment is spending on. 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