If a car salesperson in 2012 sells a used 2000 Chevrolet for $3000 and collects a commission of $200, how does this transaction affect Gross Domestic Product? a) GDP for 2008 is not increased. O b) The price of the used car does NOT increase GDP, but the commission of $200 is added to the 2000 GDP (the year of the Chevy auto model was produced). O The price of the used auto is NOT counted in GDP, but the sales commission earned by the car dealer IS counted for GDP in the year 2012. d) Both the used car price AND the commission are counted in 2012 GDP. O e) Neither the used car nor the commission is inhluded in the GDP for 2012.

Q: Refer to the table. The value of real GDP in 2018 is Nominal Real Price Year GDP GDP Index 2018…

A: Price Index=Nominal GDP/Real GDP In 2018, Nominal GDP=200,000 Price Index=100 Real…

Q: In 2018, GM produced 30 cars, of which 25 were sold in 2018 and 5 were added to its inventories. The…

A: Gross domestic product includes value of all final goods and services produced in the economy within…

Q: If Ralph pays someone to mow his lawn and Norton mows his own lawn, what is the impact on GDP? O a.…

A: The economics as a study is based upon the idea that the resources which are available with the…

Q: One key difference between national income and net domestic product is Select one: O a. net domestic…

A: We know that the Net domestic product (NDP) can be defined as the total market value of all the…

Q: Which of the following does NOT affect potential GDP? O A. the quantity of capital and human capital…

A: Here, option E is correct.  Becuase potential GDP is defined as the maximum output which can be…

Q: The gross domestic product (GDP) deflator is a measure of the price level that includes prices of a)…

A: The formula for GDP deflator is GDP Deflator = (Nominal GDP / Real GDP) * 100

Q: Consider two cars manufactured by Chevrolet in 2017. During 2017, Chevrolet sells one of the two…

A: Gross domestic product (GDP) is the sum of money value of goods and services produced in an economy,…

Q: U.S. real GDP O A. includes the value of underground production but excludes the value of leisure…

A:

Q: Compensation of employees is the largest component of GDP when using the expenditure approach to…

A: Gross domestic product (GDP) is the total monetary or market value of all the finished goods and…

Q: Refer to the information provided in Table 21.10 below to answer the question that follow. Table…

A: Nominal GDP is the GDP measured in the current year prices. Year 3: Q1=60 P1=$1.20 Q2=140 P2=$1…

Q: Which of the following is included in both the U.S. GDP and GNP? (Toyota and Nissan are Japanese…

A: Gdp is the value of all the final goods produced in a country during a particular period of time.…

Q: Joe has a full-time construction job and also does odd jobs for people on the weekends but does not…

A:

Q: In 2009, Corny Company grows and sells $2 million worth of corn to Tasty Cereal Company, which makes…

A:

Q: A farmer sells wheat to a baker for $3. The baker uses the wheat to make bread, which is sold for…

A: GDP is total value of goods and services produced in economy in a particular period of time.

Q: Which of the following items is not a component of the income approach of measuring the U.S. GDP? O…

A: The Gross Domestic Product (GDP) is the standard measure of value-added produced during a certain…

Q: Currently, in the U.S. economy, the largest component on the expenditures side of the GDP equation…

A: The economies tend to work upon the basis of the expenditures done by various entities, and the…

Q: A farmer sells $150,000 of apples to individuals who take them home to eat and $75,000 of apples to…

A: A farmer is selling the apples to two individuals one is final consumer and one is the producer.

Q: When Ellen buys a new computer for her accounting business, it is included in gross domestic product…

A: GDP measures the value of goods and services produced in an economy within the borders of the…

Q: Suppose a house is built and sold in the year 2006. If the house is resold in the year 2017, would…

A: Answer- Need to find- Suppose a house is built and sold in the year 2006.If the house is resold in…

Q: Which of these statements is not true when we discuss GDP calculation? O a. GDP includes earnings of…

A: GDP refers to the sum of the value of goods and services produced in a country in a particular…

Q: Which of the following is included in GDP? O revenue from the sale of a three-year old car O the…

A: GDP stands for Gross domestic product which include value of goods and services produced within the…

Q: GDP Data (in $ billion) Table 7-1 Durable goods = $11,080.00 Services = $12,500.56 Business…

A: Gross domestic product is a monetary measure of the market value of all the final goods and services…

Q: Refer to the table shown. What is the value of GDP using the expenditure approach? $4,785 350 235…

A: Meaning of Gross Domestic Product (GDP): The term gross domestic product refers to the situation…

Q: Using the information in the table below, calculate GDP using the expenditure approach. NZSNA…

A: Ans. The Gross Domestic Product (GDP) is the value of final goods and services produces within an…

Q: Suppose an economy's production consists only of corn and soybeans. In 2010, 20 bushels of con are…

A: Formulas: Nominal GDP = Price of the goods in current year * Quantities of the goods in current year…

Q: Which of the following are included in the income approach to calculating GDP? ..... O A. corporate…

A: the formula for calculating by income approach   =W + R + I + PR   wages is defined as the incomes…

Q: Consider the following data that gives the quantity produced and unit price for three different…

A: GDP deflator measure the price inflation , or it is measure the price of goods and services produce…

Q: e statement that total sales by businesses rose by 1.5 percent means that GDP. because O A.…

A: Gross domestic product(GDP) measures the money value of all final goods and services produced in an…

Q: (Table) Suppose a loaf of bread goes through the following stages of production, with the values…

A: GDP = gross value added at each stage

Q: This question considers GDP in a country in a single year. Which of the following stasements are…

A: The total value of all commodities and services generated by the country in a year is referred to as…

Q: Related to the Economics in Practice on p. 107: The value of the used goods sold on eBay from a U.S.…

A: Gross national product (GNP) is the estimation of the total value of finished goods and services…

Q: Which of the following will be included in the calculation of GDP using the expenditure method? O…

A: Gross Domestic Product (GDP) is the sum total of all goods and services produced in an economy…

Q: When a firm produces and sells a refrigerator worth $1,000, its contribution to the gross domestic…

A: According to the income approach, all economic expenses should equal the total income produced by…

Q: Which of the following is NOT part of GDP? O The purchase of new homes by consumers. O Purchases of…

A: GDP or Gross Domestic Product is the sum total of all goods and services that are produced in an…

Q: Which of the following statements are correct? Select one or more: O a. Government spending on goods…

A: GDP The Gross Domestic Product (GDP) basically refers to the sum of all the value added in a given…

Q: Using the following national income accounting data, compute (a) GDP, (b) NDP, and (c) NI. All…

A:

Q: GDP Data (in $ billion) Table 7-1 Durable goods $10,600.49 Services = $12,500.56 Business purchases…

A: please find the answer below.

Q: In the first half of 2017, automobile sales in the United States were lower than they were in the…

A: GDP calculation by the expenditure method is based on summation of consumption expenditure, private…

Q: A company produced 8 dishwasher machines in 2015. The company sold 6 to households in 2015 and added…

A: To find the company output in the given question.

Q: In year one, real GDP is $4,500 and in year two real GDP is $4,800. What was the grawth rate of real…

A: Note: You have uploaded multiple questions at a time. Hence, we shall answer the first one for you.…

Q: ompanies often produce more goods in a year than they end up selling. How do the nsold goods impact…

A: GDP measures the market value of goods and services produced within an economy in a given period of…

Q: If nominal GDP is $900 and GDP deflator is 120, what is the real GDP in the economy? O a. 1350 O b.…

A: Real GDP = (Nominal GDP / GDP deflator) x 100

Q: A rancher raises sheep. Once a year he shears them and sells the raw wool to a processor who cleans…

A: Gross domestic product (GDP) measures the final value of all goods and services produced in an…

Q: The table below includes data for a one-year period required to calculate GDP from the expenditure…

A: Gross domestic product (GDP): - GDP is the market value of all final goods and services produced in…

Q: In 2009, Corny Company grows and sells $2 million worth of corn to Tasty Cereal Company, which makes…

A: Given; Value of corn sold by Corny company to tasty Cereal Company= $2 millionValue of corn flakes…

Q: 1 1. The equation, GDP = C + GI+ GP + NX, best describes the O a. the Income approach to measuring…

A: Gross Domestic Product, or GDP is the sum of final value of all goods and services produced in an…

Q: The Data of Macroeconomics-End of Chapter Problem Place each of the following transactions in the…

A: Gross Domestic Product refers to the value of all final goods and services produced in an economy…

Q: If Ralph pays someone to mow his lawn and Norton mows his own lawn, what is the impact on GDP?…

A: The production and the sale of all the goods and services which is produced in the economy is…

Q: Using the table above, nominal GDP for Doc's Coffee in 2013 was O $47,000 O $60,000

A: The Nominal GDP is simply calculated by multiplying the production or output with prices of a given…