Identify the immediate effect of each of the following events on U.S. GDP and its components. • James receives a Social Security check. • John buys an Italian sports car. • Henry buys domestically produced tools for his construction company.

Identify the immediate effect of each of the following events on U.S. GDP and its components. • James receives a Social Security check. • John buys an Italian sports car. • Henry buys domestically produced tools for his construction company.

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter5: National Income Accounting

Section: Chapter Questions

Problem 2E

See similar textbooks

Related questions

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

A: The GDP is comprised of four elements, which includes the personal consumption, business investment,…

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: a) There are two methods of calculating GDP: income approach and expenditure approach. According to…

A: a) When calculating a country's GDP, the two important methods for the calculation are the…

Q: What is the term for the total value of goods and services produced within a country's borders in a…

A: In financial matters, the estimation of a country's monetary results and execution are basic for…

Q: Which of the following would be counted in U.S. GDP? (objective B3)…

A: GDP refers to the market value of all the goods and services produced in the country at a specific…

Q: The following table shows the composition of GDP in 2015 for a hypothetical country. Complete the…

A: Gross Domestic Product (GDP) is a measure of the total value of all final goods and services…

Q: As an economist with the World Bank you have been asked to measure the Gross Domestic Product for…

A: Gross domestic product (GDP) measures the market value of final goods and services produced by an…

Q: Which of the following is counted as part of the US GDP in 2019? Question 9 options: All cars…

A: All cars include used cars as well so they were not produced in 2019. So not a part of GDP.…

Q: Calculate the four components of expenditure and GDP for the following economy using data from the…

A: The real GDP(RGDP) measures the value of all final goods(g) and services(s) produced within the…

Q: Which of the following acts are included in official gross domestic product (GDP) calculations? Dan…

A: The gross domestic product is an economic term which sometimes is also called GDP, it can be defined…

Q: Although GDP is a reasonably good measure of a nation's output, it does not necessarily include all…

Q: Jane spends $1,200 on a used computer. How will this calculation effect GDP? A.) Consumption…

A: Gross domestic product (GDP) measures the market value of final goods and services produced during a…

Q: Classify each of the following as IN Africa's 2020 GDP or NOT IN Africa's 2020 GDP. Cars produced in…

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

Q: In 2010, the GDP in the tiny country of Lindora was $4 million and the price of a market basket of…

A: The gross domestic product (GDP) is the aggregate nominal monetary worth of finished goods and…

Q: he table below includes data for a one-year period required to calculate GDP from the income side…

A: Gross domestic product (GDP) refers to the summation of all market value of goods and services which…

Question

Identify the immediate effect of each of the following events on U.S. GDP and its components.

• James receives a Social Security check.

• John buys an Italian sports car.

• Henry buys domestically produced tools for his construction company.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Bob and Cho Tokarev live in Conshohocken, PA. Cho's father, Eric, lives in Sweden. For each of the following transactions that occur in their lives, identify whether it is included in the calculation of U.S. GDP as part of consumption (C), Investment (1), government purchases (G), exports (X), or imports (M). Check all that apply. Transaction The Federal Aviation Administration expands the runways at Philadelphia International Airport, which is just a few miles from Bob and Cho's house.. Cho gets a new video camera made in the United States. Cho buys a new BMW, which was assembled in Germany. Bob's employer upgrades all of its computer systems using U.S.-made parts. Cho's father in Sweden orders a bottle of Vermont maple syrup from the producer's website. C 3 000 I D G X M 000
How would each of the following transactions affect the GDP of the United States (Increase, decrease, or does not change)? The U.S. government pays $1 billion in salaries for government workers. GDP will... The U.S. government pays $1 billion to Social Security recipients. GDP will... The U.S. government pays a U.S. firm $1 billion for newly produced airplane parts. GDP will... The U.S. government pays $1 billion in interest to holders of U.S. government bonds. GDP will...
Paolo and Sharon Zambetti live in Swarthmore, PA. Their son, Van, is an artist living in New York City. For each of the following transactions that occur in their lives, identify whether it is included in the calculation of U.S. GDP as part of consumption (C), investment (I), government purchases (G), exports (X), or imports (M). Check all that apply. Transaction C I G X M Paolo buys a bottle of Italian wine. Sharon gets a haircut. Van paints a landscape and sells it to an art collector in Japan. The Zambettis build an addition on their house. The Federal Aviation Administration expands the runways at Philadelphia International Airport, which is just a few miles from Paolo and Sharon's house.
A country has just one resource - labor - that it can use to produce two goods, books and clothing. At first the country has 10 million workers, and each worker can produce either 2 books or 5 units of clothing per day. Suppose the country wants to produce 8 million books. Suppose the price of a book is $10, and the price of a unit of clothing is $20. Using this information and your answer from the last question, calculate the country's GDP (measured in dollars per day). Enter your answer as a number in the space below. (For example, if your answer is $3.75 million, enter it as 3750000 in the space below.)
Van and Amy Cho live in Swarthmore, PA. Amy's father, Carlos, lives in Sweden. For each of the following transactions that occur in their lives, identify whether it is included in the calculation of U.S. GDP as part of consumption (C), investment (I), government purchases (G), exports (X), or imports (M). Check all that apply. Transaction C I G X M Amy gets a new video camera made in the United States. Van buys a sweater made in Guatemala. Amy's father in Sweden orders a bottle of Vermont maple syrup from the producer's website. Van's employer upgrades all of its computer systems using U.S.-made parts. The state of Pennsylvania repaves highway PA 320, which goes through the center of Swarthmore.
Which of the following will be counted as part of the U.S.'s GDP for a given year? Select one: a. An All-Terrain Vehicle produced by Honda in Timmonsville, South Carolina b. Cleaning service by an illegal immigrant that is not reported to the IRS c. A whopper burger produced by Burger King in Tel Aviv, Israel d. Tools purchased by a professional plumber at Home Depot e. An antique car that is sold at an auction
Gilberto and Juanita Ivanov live in Swarthmore, PA. Juanita's father, Lorenzo, lives in Sweden. For each of the following transactions, identify whether it is included in the calculation of U.S. GDP as part of consumption (C), investment spending (I), government purchases (G), exports (X), or imports (IM). Check all that apply. Note: A product’s inclusion in one category does not necessarily imply that it is excluded from other categories.
For each of the following transactions that occur in their lives, identify whether it is included in the calculation of U.S. GDP as part of consumption (C), investment (I), government purchases (G), exports (X), or imports (M). Check all that apply. Transaction C I G X M The Pennsylvania Department of Transportation, a state administration, fixes potholes along PA highway 23, which feeds into the center of Conshohocken. Felix's employer upgrades all of its computer systems using U.S.-made parts. Janet's father in Sweden orders a bottle of Vermont maple syrup from the producer's website. Janet gets a new video camera made in the United States. Felix buys a sweater made in Guatemala.
What factors can lead to an increase in a country's Gross Domestic Product (GDP)?
Gross domestic product (GDP) is a measurement of the total value of all goods and services produced in the United States over a given time period. It is used by economists, government officials, market forecasters and others to gauge the overall health of the U.S. economy. How do consumers drive the nation's GDP?
For each of the following transactions that occur in their lives, identify whether it is included in the calculation of U.S. GDP as part of consumption (C), investment (I), government purchases (G), exports (X), or imports (M). Check all that apply. Transaction Felix paints a landscape and sells it to an art collector in Canada. Deborah buys a new BMW, which was assembled in Germany. The Azinians build an addition on their house. The Federal Aviation Administration expands the runways at Philadelphia International Airport, which is just a few miles from Carlos and Deborah's house. Deborah gets a new refrigerator made in the United States. C 0 U 0 I 0 0 0 G 0 0 0 0 X 0 0 0 M 0 0 0 0 0
Gross Domestic Product (GDP) tries to give us a sense of our economic well-being. Which of the following will be measured as an increase in GDP but need not reflect an increase in economic well-being? Ual The cost of new medical care that reduces infant mortality Ob) The value of the time Roland spends painting his own house c) Expenditures to clean up a major oil spill in Alaska d) Earnings of "numbers runners" in Chicago (they operate an illegal lottery) Question 2 (1 point) Suppose the economy of Sugarland produces 3 pizzas at $5 a pizza, 6 gallons of ice cream at $3 a gallon, and 5 cases of soda pop at $10 a case. The gross domestic product of Sugarland is a) $18. O b) $15. c) $50. d) $83. MacBook Air