Exploring Macroeconomics
8th Edition
ISBN: 9781544337722
Author: Robert L. Sexton
Publisher: SAGE Publications, Inc
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Question
Chapter 11, Problem 3P
To determine
(a)
To find:
The category of U.S.
To determine
(b)
To find:
The category of U.S. GDP expenditure to which the given item corresponds.
To determine
(c)
To find:
The category of U.S. GDP expenditure to which the given item corresponds.
To determine
(d)
To find:
The category of U.S. GDP expenditure to which the given item corresponds.
To determine
(e)
To find:
The category of U.S. GDP expenditure to which the given item corresponds.
To determine
(f)
To find:
The category of U.S. GDP expenditure to which the given item corresponds.
To determine
(g)
To find:
The category of U.S. GDP expenditure to which the given item corresponds.
To determine
(h)
To find:
The category of U.S. GDP expenditure to which the given item corresponds.
Expert Solution & Answer
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Students have asked these similar questions
Which of the following transactions should or should not be counted in GDP?
Answer Yes or No and briefly explain your answer. Answers without explanation will not be considered
in grading, even if they are correct.
a. You buy a pair of new cowboy boots on a trip to Texas
b. You buy a pair of vintage cowboy boots from your cousin in El Paso
c. A cat burglar sells $10,000 of stolen jewelry to a fence
d. Amazon issues $1 billion worth of new shares
e. GM purchases $100 million worth of tires from Firestone
f. A private company builds a new road in Memphis Y
g. Stay-at-home parents provide an estimated $500 million of child care services
Which of the following transactions should or should not be counted in GDP?
Answer Yes or No and briefly explain your answer. Answers without explanation will not be considered in grading, even if they are correct.
a. A Picasso painting sold at an auction for $30 million
b. $20 million tires purchased by Ford Motor Company
c. A $100 million Initial Public Offering (IPO) by Gameboy
d. A new tennis racket purchased by Roger Federer
e. A new tunnel under the Hudson
f. $20,000/year value of grandparents' baby-sitting their grandson
g. A $15 Pizza
h. A $1,200 stimulus check sent to households by the government as COVID relief
Which of the following would increase the consumption component of U.S. GDP?
Select one:
OA. A Baton Rouge resident purchases 100 shares of Amazon.com stock.
B. WalMart, a U.S. company, builds a new store in Oklahoma..
C. LSU purchases a new computer produced in the U.S. for Charles to use in his office.
OD. A Baton Rouge resident purchases a new washing machine produced in South Korea for use in her home.
E. LSU purchases a new computer produced in China for Charles to use in his office.
Knowledge Booster
Similar questions
- Which of the following are included in GDP calculations? a. Cleaning services performed by Molly Maid Corporation b. Lawn-mowing services performed by a neighborhood child c. Drugs sold illegally on a local street comer d. Prescription drugs manufactured in the United States and sold at a local pharmacy e. A rug woven by hand in Turkey f. Air pollution that diminishes the quality of the air you breathe g. Toxic-waste cleanup performed by a local company h. Car parts manufactured in the United States for a car assembled in Mexico i. A purchase of 1,000 shares of IBM stock j. Monthly Social Security payments received by a retireearrow_forwardQuestion 15 Which of the following would be included in GDP, the purchase of staplers from Staples by a car dealership and by Carl for his kids to play with at home. Both are included in BDP Neither would be included in GDP Carl's purchase would be included but the car dealerships would not The car dealership's purchase would be included but Carl's would not Question 16 Which of the following would lead to growth in GDP Investment in plant and equipment by business Investments in stocks by your 401K Purchase of a home All of the above will lead to GDP growtharrow_forwardWhich spending category of GDP does each of the following transactions count in? Please enter the letter C, I, G, NX, or N to represent consumption, investment, government spending, net exports, or none. The government paid a total of $30,000 in subsidies to people who had installed solar panels on their homes . Bill spent his $400 social security check on rent and food . Company X produces $5,000 of wine this year but they do not sell it . Your parents pay $8,000 for tuition to UCF . The government pays $1 million to people it hires to collect census dataarrow_forward
- What components of GDP (consumption, investment, government spending, net exports), if any, would each of the following affect and how? Explain. b) A family buys a new television c) You treat your Saudi Arabian friend a nice dinner at hotel Serina. d) Bangladesh government allocates 500 crore taka for naval expenses. e) Your uncle lives in Canada and he sends $500 at every month. f) Transcom establishes a new factory at SAVARarrow_forwardWhich of the following would increase the consumption component of U.S. GDP? Select one: OA. A Baton Rouge resident purchases 100 shares of Amazon.com stock. OB. WalMart, a U.S. company, builds a new store in Oklahoma. OC. LSU purchases a new computer produced in the U.S. for Charles to use in his office. OD. A Baton Rouge resident purchases a new washing machine produced in South Korea for use in her home. E. LSU purchases a new computer produced in China for Charles to use in his office.arrow_forwardHow would each of the following transactions affect the GDP of the United States (Increase, decrease, or does not change)? The U.S. government pays $1 billion in salaries for government workers. GDP will... The U.S. government pays $1 billion to Social Security recipients. GDP will... The U.S. government pays a U.S. firm $1 billion for newly produced airplane parts. GDP will... The U.S. government pays $1 billion in interest to holders of U.S. government bonds. GDP will...arrow_forward
- Which of the following will be counted as part of the U.S.'s GDP for a given year? Select one: a. An All-Terrain Vehicle produced by Honda in Timmonsville, South Carolina b. Cleaning service by an illegal immigrant that is not reported to the IRS c. A whopper burger produced by Burger King in Tel Aviv, Israel d. Tools purchased by a professional plumber at Home Depot e. An antique car that is sold at an auctionarrow_forwardPlace the transactions below in their appropriate categories in the GDP and calculate the overall effect on the GDP of the United States. GDP = Consumption Expenditure + Investment + Government spending + Net Exports a. My total gasoline bill for a year ($1,500) b. A Chinese citizen buys a U.S. government bond ($5,000) c. A Landscaping firm’s gasoline costs for a year ($2,500): d. A School district buys new uniforms for its basketball team ($1100) e. I invest in a fidelity mutual fund ($2,000) Only answer d and e please please?arrow_forward
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