ii) Suppose the following four actions occur in the USA in 2019. How much would these combined actions add to US GDP in 2019? Give a brief expla- nation justifying your answer. a. A Japanese carpenter, living and working in the USA, purchases $3,000 worth of materials used directly in the production of a garage, which is then sold to Smith, a Canadian living in the USA, for $17,000. b. Isabella goes to land she owns, cuts down a tree, and uses the wood to build a garage for personal use that is worth $15,000. c. You purchase a used computer from a friend for $400. d. Joe spends $1000 on a stereo, and $20 on a haircut. e. Ford (US company) builds cars and the total is valued at $20,000, in a factory in China.
ii) Suppose the following four actions occur in the USA in 2019. How much would these combined actions add to US GDP in 2019? Give a brief expla- nation justifying your answer. a. A Japanese carpenter, living and working in the USA, purchases $3,000 worth of materials used directly in the production of a garage, which is then sold to Smith, a Canadian living in the USA, for $17,000. b. Isabella goes to land she owns, cuts down a tree, and uses the wood to build a garage for personal use that is worth $15,000. c. You purchase a used computer from a friend for $400. d. Joe spends $1000 on a stereo, and $20 on a haircut. e. Ford (US company) builds cars and the total is valued at $20,000, in a factory in China.
Chapter1: Making Economics Decisions
Section: Chapter Questions
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