What components of GDP (if any) would each of the following transactions affect? Explain. (a) Aunt Bee buys a new dining room table produced by a domestic manufacturer. (b) Mr. Davis hires a local contractor to build a new house. (c) Buick sells a new Envision SUV to Enterprise Rent-A-Car. (d) The federal government sends your Uncle Dave a disability check (Social Security Disability Insurance). (e) You purchase $100,000 worth of U.S. Treasury bonds. (f) Your parents purchase 3 pounds of authentic Prosciutto di Parma (produced in the Italian city of Parma). (g) The City of Trenton purchases three new police cruisers.
What components of GDP (if any) would each of the following transactions affect? Explain. (a) Aunt Bee buys a new dining room table produced by a domestic manufacturer. (b) Mr. Davis hires a local contractor to build a new house. (c) Buick sells a new Envision SUV to Enterprise Rent-A-Car. (d) The federal government sends your Uncle Dave a disability check (Social Security Disability Insurance). (e) You purchase $100,000 worth of U.S. Treasury bonds. (f) Your parents purchase 3 pounds of authentic Prosciutto di Parma (produced in the Italian city of Parma). (g) The City of Trenton purchases three new police cruisers.
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter15: Measuring A Nation's Income
Section: Chapter Questions
Problem 1PA
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- What components of
GDP (if any) would each of the following transactions affect? Explain.
(a) Aunt Bee buys a new dining room table produced by a domestic manufacturer.
(b) Mr. Davis hires a local contractor to build a new house.
(c) Buick sells a new Envision SUV to Enterprise Rent-A-Car.
(d) The federal government sends your Uncle Dave a disability check (Social Security Disability Insurance).
(e) You purchase $100,000 worth of U.S. Treasury bonds.
(f) Your parents purchase 3 pounds of authentic Prosciutto di Parma (produced in the Italian city of Parma).
(g) The City of Trenton purchases three new police cruisers.
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