2.What happens to US gross domestic product (GDP) and its four main compo-nents when ...(a) A US household buys a new refrigerator, manufactured by a US firm?(b) Ford Motor Company (a US firm) produces a new car, which sits in a US autodealer's lot instead of being sold to a US consumer?(c) Honda (a Japanese firm) expands one of its factories that is located in the US?1(d) Hallmark (a US firm) buys $1 million worth of paper from International Paper(another US firm) to make greeting cards?(e) You (a US resident) buy a used car?(f) The State of Massachusetts hires a new employee?(g) You (a US resident) spend $25 on a haircut?

“Since you have posted a question with multiple sub-parts, we will solve the first three subparts…

-hen ... US household buys a new refrigerator, manufactured by a US firm? rd Motor Company (a US firm) produces a new car, which sits in a aler's lot instead of being sold to a US consumer? onda (a Japanese firm) expands one of its factories that is located in 1

-hen ... US household buys a new refrigerator, manufactured by a US firm? rd Motor Company (a US firm) produces a new car, which sits in a aler's lot instead of being sold to a US consumer? onda (a Japanese firm) expands one of its factories that is located in 1

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

2.
What happens to US gross domestic product (GDP) and its four main compo-
nents when ...
(a) A US household buys a new refrigerator, manufactured by a US firm?
(b) Ford Motor Company (a US firm) produces a new car, which sits in a US auto
dealer's lot instead of being sold to a US consumer?
(c) Honda (a Japanese firm) expands one of its factories that is located in the US?
1
(d) Hallmark (a US firm) buys $1 million worth of paper from International Paper
(another US firm) to make greeting cards?
(e) You (a US resident) buy a used car?
(f) The State of Massachusetts hires a new employee?
(g) You (a US resident) spend $25 on a haircut?

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