Question 1 of 4 > 3 Macmillan Learning Sizing Up the Economy Using GDP-End of Chapter Problem Dan spent $200 on a new computer monitor that he purchased from a local store. The local store had bought it from an area wholesaler for $150. The area wholesaler had bought it from the manufacturer for $85. The manufacturer bought raw materials that cost $10 to produce the monitor. For the raw-materials provider, the $10 was pure profit. This monitor also had cost the manufacturer $65 in wages, the area wholesaler $20 in wages, and the local store $15 in wages. Calculate how much GDP changed as a result of this purchase using each of the three ways to measure GDP. 80 F3 E a. First, calculate the change in GDP by adding up every dollar spent on final goods. b. Next, calculate the change in GDP by adding up every dollar's worth of output produced by detailing the value added at every stage of production. c. Finally, calculate the change in GDP by adding up every dollar of income earned. $ 4 FA R % 5 2 T 6 22 F6 Y & 7 g: F7 U * 8 $ 200 $ DII FB 1 200 ( 9 DD FO O ) 0 បទ៖ F10 P d F11 33 + 11 11 S F12

Question 1 of 4 > 3 Macmillan Learning Sizing Up the Economy Using GDP-End of Chapter Problem Dan spent $200 on a new computer monitor that he purchased from a local store. The local store had bought it from an area wholesaler for $150. The area wholesaler had bought it from the manufacturer for $85. The manufacturer bought raw materials that cost $10 to produce the monitor. For the raw-materials provider, the $10 was pure profit. This monitor also had cost the manufacturer $65 in wages, the area wholesaler $20 in wages, and the local store $15 in wages. Calculate how much GDP changed as a result of this purchase using each of the three ways to measure GDP. 80 F3 E a. First, calculate the change in GDP by adding up every dollar spent on final goods. b. Next, calculate the change in GDP by adding up every dollar's worth of output produced by detailing the value added at every stage of production. c. Finally, calculate the change in GDP by adding up every dollar of income earned. $ 4 FA R % 5 2 T 6 22 F6 Y & 7 g: F7 U * 8 $ 200 $ DII FB 1 200 ( 9 DD FO O ) 0 បទ៖ F10 P d F11 33 + 11 11 S F12

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter19: The Macroeconomic Perspective

Section: Chapter Questions

Problem 25CTQ: Cross country comparisons of GDP per capita typically use purchasing power parity equivalent...

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QUESTION 19 Transfer payments are a excluded when calculating GDP because they only refiect inflation Ob excluded when calculating GDP because they do not reflect current production O c included when calculating GDP because they are a category of investment spending. O d. inciuded when calculating GDP because they increase the spending of recipients