**Text for Educational Website:****GDP Components Analysis**To understand how various transactions impact the components of Gross Domestic Product (GDP), consider the following scenarios:a) Jahzara spends $300 to buy her husband dinner at the finest restaurant in Boston. - **Impact on GDP:** This transaction affects the Consumption (C) component of GDP as it involves spending on a service within the economy.b) Nylah spends $1,200 on a new smartphone to use in her publishing business. The smartphone was built in China. - **Impact on GDP:** This expenditure affects the Net Exports (NX) component of GDP. While the purchase is for Investment (I), as it is used for business, the smartphone being an import subtracts from GDP.c) Joseph spends $800 on a tablet to use in his editing business. He got last year’s model on sale for a great price from a local manufacturer. - **Impact on GDP:** This transaction affects the Investment (I) component. Despite being a prior year model, it is a domestic product and contributes to business investment, thus influencing GDP.d) GM builds $500 million worth of cars, but consumers only buy $470 million worth of them. - **Impact on GDP:** This situation involves the Investment (I) and Consumption (C) components. The total production adds to GDP under Investment. The $30 million worth remaining as unsold contributes to Inventory Investment, part of the Investment component.e) The Federal Government sends your Grandmother a Social Security Check. - **Impact on GDP:** Such transfer payments do not directly count towards GDP, as they are not payments for goods or services. They are redistribution of money, lacking impact on overall production.Understanding these scenarios helps in recognizing how various economic activities influence national output measurement.

GDP can be computed in three approach, using expenditures, incomes, or production. According to the…

Answered: What components of GDP, if any, would…

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter4: The Aggregate Economy

Section: Chapter Questions

Problem 6E

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Give typing answer with explanation and conclusion what is the US GDP for the first quarter and second quarter of 2021? What is the personal consumption expenditures for the first quarter and second quarter of 2021?
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Gross Domestic Product Explain how net exports affect the US economy. Describe both positive and negative impacts on GDP. Why do national income accountants use net exports to compute GDP, rather than simply adding exports to the other expenditure components of GDP? You have the following information on 3 countries: Soccerland, Handeggland, and Neverland How long will it take until Soccerland’s GDP increases by 75%? How long will it take until Soccerland and Handeggland have the same GDP? Soccerland’s population is not happy that, eventually, Handeggland is going to have higher GDP than their country. They feel that they are a much better country, so they are going to work harder to ensure that Handeggland will never catch up with Soccerland. If Soccerland’s new growth rate is constant every year, what is the minimum growth rate that ensures that Soccerland will always have a higher GDP than Handeggland? Neverland’s ambition is to host the World Cup. At the…
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