GDP Practice Scenario Component of GDP affected: C, I, G, X-M, or NC-not counted Effect on GDP (increase, decrease, no change) 1. A farmer purchases a new tractor. 2. Businesses increase their current inventories. 3. You spend $7 to attend a movie. 4. Worried about consumer confidence, Ford purchases less sheet metal for cars. 5. A retired man cashes his social security check from the government. 6. A French company purchases a one- year membership to PartyPeople.com, a U.S.-based company 7. A person pays $450 a month to rent an apartment. 8. Worried about a recession, people begin saving more money. 9. The U.S. government hires 10 Chinese-language experts from China to train U.S. workers. 10. Government closes school for the month of March.
GDP Practice
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Scenario |
Component of GDP affected: C, I, G, X-M, or NC-not counted |
Effect on GDP (increase, decrease, no change) |
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1. A farmer purchases a new tractor. |
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2. Businesses increase their current inventories. |
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3. You spend $7 to attend a movie. |
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4. Worried about consumer confidence, Ford purchases less sheet metal for cars. |
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5. A retired man cashes his social security check from the government. |
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6. A French company purchases a one- year membership to PartyPeople.com, a U.S.-based company |
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7. A person pays $450 a month to rent an apartment. |
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8. Worried about a recession, people begin saving more money. |
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9. The U.S. government hires 10 Chinese-language experts from China to train U.S. workers. |
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10. Government closes school for the month of March. |
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