Consider a country where the adult population (about 1 million) include skilled and unskilled workers, retirees, and students. There are many firms (domestic-owned and foreign-owned), and trading occurs with a neighboring country. At the end of 2018, the nation's bureau of economic analysis preliminary report stated that the country's 2018 gross domestic product is $12.8 billion. Question 1 of 5) Consider that at the beginning of 2019, the following additional information was obtained with a note that while these activities occurred in 2018, they were not included in the preliminary report. For each activity, state whether it should be included in the calculation of the country's 2018 GDP, the component of GDP it would affect if included, and whether this activity will increase, decrease, or not change the preliminary value calculated. The government paid some self-employed individuals $40,000 for their work with its Clean Streets campaign. This event should be the reported preliminary value of the country's gross domestic product. included in the nation's 2018 GDP. Specifically, this event will change two or more of the components of GDP , and will increase
Consider a country where the adult population (about 1 million) include skilled and unskilled workers, retirees, and students. There are many firms (domestic-owned and foreign-owned), and trading occurs with a neighboring country. At the end of 2018, the nation's bureau of economic analysis preliminary report stated that the country's 2018 gross domestic product is $12.8 billion. Question 1 of 5) Consider that at the beginning of 2019, the following additional information was obtained with a note that while these activities occurred in 2018, they were not included in the preliminary report. For each activity, state whether it should be included in the calculation of the country's 2018 GDP, the component of GDP it would affect if included, and whether this activity will increase, decrease, or not change the preliminary value calculated. The government paid some self-employed individuals $40,000 for their work with its Clean Streets campaign. This event should be the reported preliminary value of the country's gross domestic product. included in the nation's 2018 GDP. Specifically, this event will change two or more of the components of GDP , and will increase
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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decrease
increase
none of the components of GDP
not change (nave no effect on)
should be
should not be
the consumption spending component preliminary value the export spending component preliminary value the government spending component preliminary value the net exports component preliminary value two or more of the components of GDP
Transcribed Image Text:Consider a country where the adult population (about 1 million) include skilled and unskilled workers, retirees, and students. There are many firms (domestic-owned and foreign-owned), and trading occurs with a neighboring country. At the end of 2018, the nation's bureau of economic analysis
preliminary report stated that the country's 2018 gross domestic product is $12.8 billion.
(Question 1 of 5)
Consider that at the beginning of 2019, the following additional information was obtained with a note that while these activities occurred in 2018, they were not included in the preliminary report. For each activity, state whether it should be included in the calculation of the country's 2018 GDP, the
component of GDP it would affect if included, and whether this activity will increase, decrease, or not change the preliminary value calculated.
The government paid some self-employed individuals $40,000 for their work with its Clean Streets campaign.
This event should be
the reported preliminary value of the country's gross domestic product.
included in the nation's 2018 GDP. Specifically, this event will change two or more of the components of GDP
, and will increase
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