Evaluate the effect of the following transaction on GDP from the points of the view of the production approach to GDP : Hertz Rent-a-Car replaces its rental fleet by buying $100,000,000 worth of new cars from General Motors. It sells its old fleet to a groupof used -car dealers for $40,000,000. The group resells the used cars to the public for a total of $60,000,000.

Q: Used textbooks sold at your college bookstore  Use books sold at a garage sale Cars made in the…

A: Gross domestic product(GDP) estimates the monetary worth of goods and services, that is, those that…

Q: Describe how the recent change in income may have affected personal savings, business investments,…

A: In the recent period, the world economy is adversely affected by coronavirus created COVID pandemic.…

Q: Which of the following are included in this year’s GDP? Explain your answer in each. The income of a…

A: GDP computes the monetary value of final goods and services—that is, those that are purchased by the…

Q: Many years ago, Peggy paid $500 to put together a record collection. Today, she sold her albums at a…

A: Gross domestic product (GDP) is the monetary value of all final goods and services produced in an…

Q: Which of the following would increase the consumption component of U.S. GDP? Select one: OA. A Baton…

A: GDP refers to the gross domestic product that refers to the monetary value of all final goods and…

Q: The table below details the composition of an economy’s GDP by spending category. Category…

A: Given information: Nondurable goods = $5,200 billion Services = $8,250 billion Durable goods =…

Q: Which of the following are included in this year’s GDP? Explain your answer in each Rent received on…

A: GDP: GDP or Gross Domestic Product computes the health of an economy. A country with greater GDP per…

Q: Identify whether or not each of the following transactions would be included in GDP, and if so,…

A: e.A homeowner buys shingles to re-do her roof. Yes, this will be included in GDP, in consumption…

Q: Indicate what components of GDP (if any) each of the following transactions would affect. Check all…

A: The economics as a study is based upon the basic idea of scarcity, where the resources which are…

Q: All of the following are components of the expenditure approach to measuring GDP except from: Group…

A: The correct option is : Car dealer in Iowa being paid his monthly salary

Q: Suppose Nucor Steel sells $2,000 worth of steel to Ford, other producers sell $5,000 worth of other…

A: Answer: GDP refers to the value of only final goods and services produced in a year. It does not…

Q: Which of the following transactions should or should not be counted in GDP? Answer Yes or No and…

A: We shall answer the first three subparts only. Please resubmit the other parts separately in case…

Q: Many years ago, Sophie paid $500 to put together arecord collection. Today, she sold her albums at a…

A: Meaning of GDP (Gross Domestic Product): The Gross domestic product at current price is the market…

Q: Now, from our class discussions I created an example that you inherited the company, --let’s called…

A: Gross Domestic product (GDP) is the sum total of goods and services produced and traded with in the…

Q: Which of the following would increase the consumption component of U.S. GDP? Select one: OA. A Baton…

A: GDP refers to the gross domestic product that refers to the monetary value of all final goods and…

Q: Which of these scenarios would be included in GDP?     revenue from selling a four-year-old car…

A: GDP also known as gross domestic product is the sum value of all final goods and services produced…

Q: The table below details the composition of an economy’s GDP by spending category.   Category…

A: Net Exports = Exports - Imports  Consumption = Durable goods + Non Durable goods + Services  GDP =…

Q: Identify the immediate effect of each of the following events on the U.S. GDP. List the affected…

A: GDP is the gross domestic product.  GDP is defined as the total production of goods and services in…

Q: Explain the initial effect of each of the following events on Canada’s GDP. a) Toby sells his used…

A: Gross domestic product refers to the  final value of all goods and services produced in a territory…

Q: List and compare the four components of the expenditure approach to calculating GDP.

A: Gross Domestic Product refers to the final value of all the services and goods produced in a nation…

Q: Ms. Blume and Mr. Simon both live in Iowa. In February, a car dealer in Iowa bought a new,…

A: GDP: GDP or gross domestic product is the sum of the value of all end commodities produced within…

Q: Last year, a small nation with abundant forests cut down $200 worth of trees. It then turned $100…

A: Final value of book shelves = $250 Value of unused lumber in inventory = $(150-100)= $50 Value of…

Q: H6. Which of the following transactions should or should not be counted in GDP? Answer why or why…

A: Hi! Thank you for the question, As per the honor code, we are allowed to answer three sub-parts at a…

Q: Suppose a group of British investors finances the construction of a plant to manufacture skateboards…

A: GDP refers to the aggregate value of total output of all goods and services produced within the…

Q: Please explain the difference between calculating GDP using the expenditure approach and the income…

A: The total value of goods and produced within a country in a financial year is referred to as…

Q: SDP for the Calculate the four components of expenditure and Instructions: Enter your responses as…

A: Gross Domestic Product (GDP) is the value of final goods and services produced in the domestic…

Q: Which of the following are counted in this year GDP? Justify your answer. a) A local car dealer sold…

A: Gross Domestic Product refers to the value of all the finished goods and services produced inside…

Q: Identify whether or not each of the following transactions would be included in GDP, and if so,…

A: GDP refers to the gross domestic product of the economy which measures the total money value of all…

Q: Which of the following transactions will be counted in the GDP     a) Purchase of a used car.…

A: This can be defined as a concept that shows the total number of the output of products and…

Q: dentify whether or not each of the following transactions would be included in GDP, and if so, which…

A: GDP calculation is essential concept in macro economic analysis, it enables us to draw a clear…

Q: Indicate what components of GDP (if any) each of the following transactions would affect. Check all…

A: Answer in step 2