1. a friend who knows of your interest in economics comes uo to you after reading the latest GDP data and excitedly explains, did you see that normal GDP rose from $19 trillion to $19.5 trillion? what should you tell your friend about this news?
1. a friend who knows of your interest in economics comes uo to you after reading the latest GDP data and excitedly explains, did you see that normal GDP rose from $19 trillion to $19.5 trillion? what should you tell your friend about this news?
2. In the following situations, explain what is counted (or is not counted) in this year's GDP.
A. you bought the latest playstation model at gameshop last year and resold it on ebay this year.
B. You purchase a new copy of investing for dummies at barnes & nobel.
C. you purchase a historic home using the services of a real estate
D. you detail your car so it it spotless inside and out.
E. you purchase a new hard drive for your old lap.
F. your physical therapist received $300 for for physical therapy but reports only 100.
G. Apple buys 1,000 motherboards for use in making new computers.
H. Tayota produces 10,000 new camrys that remain unsold at the of the year.
3. To which component of GDP expenditure (C,I,G, or NX) does each of the following belongs.
A. swiss chocolates imported from europe.
B. A driver's license you receive from the department of motor vehicles.
C. a candle you buy at a local store.
D. a new house.
4. a mechanic builds an engine and then sells it to a customized body shop for $7,000. the body shop installs the engine in a carand sells the car to a dealer for $20,000. the dealer then sells the finished vehicle for $35,000. a consumer drives off with the car. By how much GDP increase? what is the value added at each step of the production process? How does the total value added compare with the amount by which GDP increased?
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