In the realm of microeconomics rather than

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In the realm of microeconomics rather than macroeconomicsoScientistsoPolicy advisersoIn the realm of normative economics rather than positive economicsA statement describing how the world isoIs a positive statementoWould only be made by an economist speaking as a policy adviseroIs a normative statementoWould only be made by an economist employed by the governmentGDP is defined as the
oValue of all final goods and services produced by the citizens of a country,regardless of where they are living, in a given period of timeoValue of all goods and services produced by the citizens of a country,regardless of where they are living, in a given period of timeoValue of all goods and services produced within a country in a givenperiod of timeoValue of all final goods and services produced within a country in agiven period of timeWhen economists refer to intangible items, they are referring to such things asoIllegal goods, and the value of such items is included in GDPoIllegal goods, and the value of such items is excluded in GDPoHair styling and dental care, and the value of such items is includedin GDPoHair styling and dental care, and the value of such items is excluded fromGDPFine Edge manufactures lawn mowers. At the end of 2014 it had $2 million worthof lawn mowers in inventory. In 2015 it sold $10 million worth of lawn mowers toconsumers and had $1 million worth of lawn mowers remaining in inventory atthe end of the year. How much did the lawn mowers produced by Fine Edge addto GDP in 2015?
Suppose a country has government expenditures of $3,500, taxes of $2,200,consumption of $9,000, exports of $2,500, imports of $2,700, transfer paymentsof $750, capital depreciation of $800, and investment of $3,000. GDP equals
How can economists who agree on the science/economics of an issuerecommend different policy prescriptions?Explain how we treat the production of goods produced in year 1 but sold in year
2 when calculating GDP.

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Term
Spring
Professor
Petry
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