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.
Economics (MindTap Course List)
13th Edition
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter7: Macroeconomic Measurements, Part Ii: Gdp And Real Gdp
Section: Chapter Questions
Problem 9WNG
Related questions
Question
![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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4ad229d2-94c2-4360-b0ca-273c76ee826c%2F48ae1be1-8f4a-48e2-9a9c-eef2112b5421%2Fwgui61_processed.png&w=3840&q=75)
Transcribed Image Text: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.
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