You have been hired as an economic consultant and your job requires you to calculate nominal GDP according to the expenditure approach and write a two-page report explaining the concepts to your client and how you made your calculations. Your report should include the following:
A discussion of GDP components.
Discuss the importance and limitations of the GDP concept.
Highlight any necessary precautions related to GDP calculation.
Finally, your report should include a comparison of GDP in the current year with GDP in the previous year and discuss your interpretation about the direction of the economy.
Your calculation should be made based on the table below.
Previous Year
Current Year
Residential Investment
500
550
Exports
75
85
Wages
1,000
1,250
Durables
800
750
Inventory
50
200
Net Investment
250
300
Government Spending
400
600
Imports
200
250
Depreciation
65
72
Taxes
125
125
Non-durables
700
725
Rent
400
350
Services
900
1,000
Non-residential Investment
400
500
need help now
1.Suppose you have a market for sushi which is currently in equilibrium. Thinking of the supply and demand graph for this market, what would have to happen to cause both the equilibrium quantity of sushi in this market to rise and the equilibrium price of sushi in this market to fall? Is this even something that could happen?
In your answer, please pay attention to and describe what would have to happen to the supply and demand. (You may of course elaborate with any hypothetical “real life” reasons for any changes in the graph too.)
2. Please answer the following:
1. What is a trade-off?
2. What is an opportunity cost? Is an opportunity cost the same thing as a trade-off, or are there any differences (be sure to explain your answer).
3. Why is the concept of trade-offs/ opportunity costs important in economics? In other words, what is it about economics which requires us to discuss these topics?
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Activity 2 : Supply and Demand
Economics Assignment Help Please complete all the questions in the activity. You can write the answers by hand, use a word processor, or add answers using a .pdf editor- whatever works for you!
Please organize your answers sequentially, make sure they are legible and clear. Your submission must be one .pdf file.
Economics Question
It is totally fine if you want to submit one (or a few) pictures of all of your graphs at once instead of uploading them individually. Please just be sure they are labeled so I know where they belong and upload them to the first question.