Bundle: Essentials Of Economics, Loose-leaf Version, 8th + Lms Integrated Mindtap Economics, 1 Term (6 Months) Printed Access Card
8th Edition
ISBN: 9781337368087
Author: N. Gregory Mankiw
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Question
Chapter 17, Problem 5CQQ
To determine
The effect of foreign investment.
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
When the Japanese car maker Toyota expands one of its car factories in the United States, What is the likely impact of this event on the gross domestic product and gross national product of the United States?
a.GDP rises and GNP falls.
b.GNP rises and GDP falls.
c. GDP shows a larger increase than GNP
d. GNP shows a larger increase than GDP
Jane spends $1,200 on a used computer. How will this calculation effect GDP?
A.) Consumption will rise and GDP will rise
B.) Investment will rise and GDP will rise
C.) Since the good was not currently produced consumption will not rise, neither will GDP
D.) The GDP deflator will rise but not real GDP
Identify the immediate effect of each of the following events on the U.S. GDP. List the affected component(s) of U.S. GDP for each situation if there is a change. Briefly explain the reasons if there is no change to GDP. Assume the person described by each event is an American citizen who works and lives in the U.S. Please notice that each following event is independent of one another.
A. Linda pays the college tuition fee for her daughter.
B. James receives a social security check from the US government.
C. John buys a sports car which is made in Italy.
D. Henry buys domestically produced machinery for his start-up construction business..
Chapter 17 Solutions
Bundle: Essentials Of Economics, Loose-leaf Version, 8th + Lms Integrated Mindtap Economics, 1 Term (6 Months) Printed Access Card
Ch. 17.1 - Prob. 1QQCh. 17.2 - Prob. 2QQCh. 17.3 - Prob. 3QQCh. 17 - Prob. 1CQQCh. 17 - Prob. 2CQQCh. 17 - Prob. 3CQQCh. 17 - Prob. 4CQQCh. 17 - Prob. 5CQQCh. 17 - Prob. 6CQQCh. 17 - Prob. 1QR
Ch. 17 - List and describe four determinants of...Ch. 17 - Prob. 3QRCh. 17 - Prob. 4QRCh. 17 - Prob. 5QRCh. 17 - Prob. 6QRCh. 17 - Prob. 7QRCh. 17 - Prob. 8QRCh. 17 - Prob. 1PACh. 17 - Prob. 2PACh. 17 - Prob. 3PACh. 17 - Prob. 4PACh. 17 - Prob. 5PACh. 17 - Prob. 6PACh. 17 - Prob. 7PACh. 17 - Prob. 8PACh. 17 - Prob. 9PA
Knowledge Booster
Similar questions
- Last year, a small nation with abundant forests cut down 200 worth of trees. It then turned 100 worth of trees into 150 worth of lumber. It used 100 worth of that lumber to produce $250 worth of bookshelves. Assuming the country produces no other outputs, and there are no other inputs used in producing trees, lumber, and bookshelves, what is this nations GDP? In other words, what is the value of the final goods the nation produced including trees, lumber and bookshelves?arrow_forwardExplain briefly whether each of the following would cause GDP to overstate or understate the degree of change in the broad standard of living. The environment becomes dirtier The crime rate declines A greater variety of goods become available to consumers Infant mortality declinesarrow_forwardThe University of Chicago, a privately-owned school, is currently building a new hospital. This will be classified in U.S. GDP as ________, because ____________. Group of answer choices A.consumption; it will provide medical services to consumers B.net exports; most construction workers are foreigners C.government purchases; the construction constitutes government expenditure D.investment; it increases the capital stockarrow_forward
- Consider the following data for a hypothetical economy that produces two goods, milk and honey. Prices Year 1 Year 2 Quantity Produced milk (litres) 100 135 honey (kg) 35 22 a. Compute nominal GDP for each year in this economy. Nominal GDP in year 1: $ Nominal GDP in year 2: $ milk ($/litre) 4 3 honey ($/kg) 3 4 (Round your response to the nearest whole number.) (Round your response to the nearest whole number.) The percentage change in nominal GDP from year 1 to year 2 is%. (Round your response to two decimal places. Use the minus sign to enter negative numbers.) b. Using year 1 as the base year, compute real GDP for each year using the traditional approach. Real GDP in year 1year 1 prices- $ Real GDP in year 2year 1 prices (Round your response to the nearest whole number.) (Round your response to the nearest whole number.) The GDP deflator in year 1year 1 prices The GDP deflator in vear? The percentage change in real GDP from year 1 to year 2 is%. (Round your response to two decimal…arrow_forward1. What is GDP? 2. What is net export? 3. What is the difference between Microeconomics and Macroeconomics? 4. What is consumption? 5. What are investments? 6. Write the equation for GDParrow_forward1) Explain how GDP is used in the calculation of a recession or economic growth. What is a recession? How do you know whether an economy is growing or not? 2) Explain why intermediate goods are not counted in the calculation of GDP. What is an intermediate good?arrow_forward
- When the Japanese car maker Toyota expands one ofits car factories in the United States, what is the likelyimpact of this event on the gross domestic productand gross national product of the United States?a. GDP rises and GNP falls.b. GNP rises and GDP falls.c. GDP and GNP both rise but GDP rises by more.d. GDP and GNP both rise but GNP rises by more.arrow_forwardClassify each of the following items as a final good or service or an intermediate good or service, and identify which is a component of consumption expenditure, investment, or government expenditure on goods and services. A. A textbook bought by a student B. A computer purchased for a senator's office C. New cars bought by Hertz, the car rental firm D. Aluminum sheets bought by Boeing 1. A is a final good that is consumption expenditure, B is a final good that is government expenditure, C is a final good that is investment, and D is an intermediate good. 2. A is a final good that is investment, B is an intermediate good, C is a final good that is investment, and D is an intermediate good. 3. A is a final good that is consumption expenditure, B is an intermediate good, C is a final good that is consumption expenditure, and D is a final good that is investment. 4. A is a final good that is consumption expenditure, B is a final good…arrow_forward3. For each of the following events, what is the likely effect on GDP? a. an increase in government military spending due to the war in Ukraine b. Prostitution is made legal across the country. c. A miller sells flour to a baker. d. A miller sells flour to a final consumer. e. There is a large decline in the consumption of cigarettes. f. There is a large decline in the consumption of heroin. g. There is an increase in divorce rates.arrow_forward
- 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.arrow_forwardPlease give me the correct answerarrow_forwardA U.S. consumer buys a new Toyota vehicle (a Japanese company), which is manufactured at Toyota manufacturing facility using all U.S. made parts in San Antonio, TX. As a result, OU.S. consumption, U.S. GDP, and Japanese GDP are all unaffected. U.S. consumption and GDP increase, but Japanese GDP is unaffected U.S. consumption and Japanese GDP increase, but U.S. GDP is unaffected. OU.S. consumption, U.S. GDP, and Japanese GDP all increase.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Principles of Economics 2eEconomicsISBN:9781947172364Author:Steven A. Greenlaw; David ShapiroPublisher:OpenStax
Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
Principles of Economics 2e
Economics
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:OpenStax
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning