Bundle: Macroeconomics, Loose-leaf Version, 13th + MindTap Economics, 1 term (6 months) Printed Access Card
13th Edition
ISBN: 9781337742412
Author: Roger A. Arnold
Publisher: Cengage Learning
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Question
Chapter 7, Problem 5WNG
To determine
Estimate the consumption value.
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If consumption is 10, investment 5, government purchases 6, exports 8, and imports 7, what is GDP?
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 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
Chapter 7 Solutions
Bundle: Macroeconomics, Loose-leaf Version, 13th + MindTap Economics, 1 term (6 months) Printed Access Card
Ch. 7.1 - Prob. 1STCh. 7.1 - Prob. 2STCh. 7.2 - Prob. 1STCh. 7.2 - Prob. 2STCh. 7.2 - Prob. 3STCh. 7.4 - Prob. 1STCh. 7.4 - Prob. 2STCh. 7.4 - Prob. 3STCh. 7 - Prob. 1QPCh. 7 - Prob. 2QP
Ch. 7 - Prob. 3QPCh. 7 - Prob. 4QPCh. 7 - Prob. 5QPCh. 7 - Prob. 6QPCh. 7 - Prob. 7QPCh. 7 - Prob. 8QPCh. 7 - Prob. 9QPCh. 7 - Prob. 10QPCh. 7 - Prob. 11QPCh. 7 - Prob. 12QPCh. 7 - Prob. 13QPCh. 7 - Prob. 14QPCh. 7 - Prob. 1WNGCh. 7 - Prob. 2WNGCh. 7 - Prob. 3WNGCh. 7 - Prob. 4WNGCh. 7 - Prob. 5WNGCh. 7 - Prob. 6WNGCh. 7 - Prob. 7WNGCh. 7 - Prob. 8WNGCh. 7 - Prob. 9WNGCh. 7 - Prob. 10WNGCh. 7 - Prob. 11WNG
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Similar questions
- Van and Amy Cho live in Conshohocken, PA. Amy's father, Carlos, lives in Sweden. For each of the following transactions that occur in their lives, identify whether it is included in the calculation of U.S. GDP as part of consumption (C), investment (I), government purchases (G), exports (X), or imports (M). Check all that apply. Transaction Amy's father in Sweden orders a bottle of Vermont maple syrup from the producer's website. Amy gets a new refrigerator made in the United States. The Pennsylvania Department of Transportation, a state administration, fixes potholes along PA highway 23, which feeds into the center of Conshohocken. Van's employer upgrades all of its computer systems using U.S.-made parts. Van buys a sweater made in Guatemala. C I 0 G 0 0 X | Marrow_forwardlook at this (Links https://www.cbsnews.com/news/why-gdp-fails-as-a-measure-of-well-being/) article published by CBS News. Do you agree with the author's assessment that GDP fails to measure well being? Why (or why not)? Are there things that contribute to your well-being and happiness but are excluded from the calculation of GDP? Share an example and describe why it might be excluded from the GDP calculation.arrow_forwardAccording to the table (in billions of dollars), Consumption $1,000 Interest $80 Corporate Profits $200 Government Purchases $480 Depreciation $120 Rent $300 Gross Private Investment $400 Compensation of Employees $750 Exports $100 Imports $180 Proprietor’s Income $220 Income Earned but not Received $110 Income Received but not Earned $230 a. Calculate GDP using the Expenditure Approach b. Calculate GDP using the Income Approacharrow_forward
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