1. Which of the following are included in this year’s GDP? Explain your answer in each. A 2-hour decrease in the length of the workweek. The purchase of an AT&T corporate bond. A $2 billion increase in business inventories.
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1. Which of the following are included in this year’s
- A 2-hour decrease in the length of the workweek.
- The purchase of an AT&T corporate bond.
- A $2 billion increase in business inventories.
Step by step
Solved in 3 steps
- Which of the following are included in GDP, and which are not? The cost of hospital stays The rise in life expectancy over time Child care provided by a licensed day care center Child care provided by a grandmother A used car sale A new car sale The greater variety of cheese available in supermarkets The iron that goes into the steel that goes into a refrigerator bought by a consumer.Last year, a small nation with abundant forests cut down 200 worth of trees. It then turned 100 worth of trees into 150 worth of lumber. It used 100 worth of that lumber to produce $250 worth of bookshelves. Assuming the country produces no other outputs, and there are no other inputs used in producing trees, lumber, and bookshelves, what is this nations GDP? In other words, what is the value of the final goods the nation produced including trees, lumber and bookshelves?Which of the following are included in this year’s GDP? Explain your answer in each. The income of a dentist. The money received by Smith when she sells her economics textbook to a book buyer.
- 2.Now, from our class discussions I created an example that you inherited the company, --let’s called is U-- that owns the land growing the trees and you sell your cut down trees to Company V for $30,000. Company V converts your trees into logs and sell them further down the industry supply chain. Think about the impact of this transaction between Company U and Company V on increasing the GDP. Which one of the parts of the GDP formula does this $30,000 transaction increase: C, I, G, X, or I? Correctly identify which one increases GDP and why you chose that part of the GDP impacted.Which of the following are included in this year’s GDP? Which are excluded or included. a. Interest received on an AT&T corporate bond: b. Social Security payments received by a retired factory worker: c. Unpaid services of a family member who painted the family home: d. Income of a dentist from the dental services she provided: e. A monthly allowance that a college student receives from home: f. Money received by Josh when he resells his nearly brand-new Honda automobile to Kim: g. The publication and sale of a new college textbook: h. An increase in leisure resulting from a 2-hour decrease in the length of the workweek, with no reduction in pay: i. A $2 billion increase in business inventories: j. The purchase of 100 shares of Alphabet (the parent company of Google) stock:1) Which of the four components of GDP – C, I, G, NX -- will be affected by each of the following transactions involving American Airlines ? a)You purchase a ticket on American Airlines flight to Seattle to visit your uncle. b)American Airlines purchases a new jetliner from Boeing Co located in Seattle, Washington. c)A person in France purchases a ticket to fly on an American Airlines flight from Paris to New York. d)The city of Philadelphia agrees to spend funds to extend one of the runways at Philadelphia International Airport so that American Airlines will be able to land larger jets.
- • Holly has recently graduated from college and has bought a house that was built 50 years ago for $100,000. She used a real estate agent to help her find and purchase the house, and the real estate agent received 5 percent of the value of the sale, or $5,000, to be paid by the seller of the house. The value of GDP in this case would increase by $95,000. increase by $105,000 increase by $5,000. increase by $100,000.Which of the following are included in this year’s GDP? Explain your answer in each case.a. Interest on an AT&T corporate bond.b. Social Security payments received by a retired factory worker.c. The unpaid services of a family member in painting the family home.d. The income of a dentist.e. The money received by Smith when she sells her economics textbook to a book buyer.f. The monthly allowance a college student receives from home.g. Rent received on a two-bedroom apartment.h. The money received by Josh when he resells his current year- model Honda automobile to Kim.i. The publication of a college textbook.j. A 2-hour decrease in the length of the workweek.k. The purchase of an AT&T corporate bond.l. A $2 billion increase in business inventories.m. The purchase of 100 shares of GM common stock.n. The purchase of an insurance policy.Which one of these items will not be a part of the current year's GDP? а. Spending of the government for public infrastructure b. Spending of the government for transfer payments O C. Spending of the government for social services such as education and health services d. Spending of the government for defense 00 Do
- 72. Which of the following expenditures would increase the consumption component of GDP? A. You buy a new house. B. You buy a pizza. C. You buy 1,000 shares of stock. D. You buy a used book about financeWhich of the following are included in this year’s GDP? Explain your answer in each Rent received on a two-bedroom apartment. The money received by Josh when he resells his current-year-model Honda automobile to Kim. The publication of a college textbook.With the following information calculate the GDP for nation X The country's spending on consumer goods and services was $60 Businesses invested $15 and built up their inventories of goods $5 The Government of X spent $25 on goods and services and made $5 of transfer payments X exports $10 of goods and services while importing $15 a. $105 b.$100 c. $95
