Answer Happy

In the AD/AS model, what can prevent the economy from achieving equilibrium at potential GDP?Explain the difference between final and intermediate goods, and give an example of each. Define the four categories of expenditures, which comprise GDP. Explain what is and what is not included in government purchases in GDP. Which of the following are included and which are excluded in calculating this year's GDP? Explain in each instance.(a) A monthly scholarship cheque received by an economics student.(b) The purchase of a new corncrib by a farmer.(c) The purchase of a used tractor by a farmer.(d) The cashing in of a savings bond.(e) The services of a mechanic in fixing the radiator in his own car.(f) Canada Pension Plan cheques received by a retired person.(g) An increase in business inventories.(h) Government purchase of missiles.(i) A barber's income.(j) Income received from interest on a corporate bond.(k) Cash received from selling a corporate bond.