What counts as gdp, What counts as GDP (I)? GDP rises by

What counts as gdp

Reference no: EM132117917

Question: What counts as GDP (I)?

(a) GDP rises by the $5,000 amount of your tuition payment. This is the purchase of a service (education) that is produced this semester.

(b) The purchase of used goods does not involve new production. This example is just the transfer of an existing good, so GDP is unchanged. If you bought the used car from a used-car dealer, the service of selling the car would represent new production - so something like $200 of the $2,500 might be included in GDP.

(c) The new dam is new production, and the government spending of $100 million is counted as GDP. Notice that if the spending were spread over several years, then the flow of new production (and GDP) would also be spread over time.

(d) Foreign graduate students working in the United States contribute to production that occurs within the United States, and this is included in GDP. So GDP goes up by $5,000 for each student.

Reference no: EM132117917

Questions Cloud

Why are the given two numbers different : How large is the economy of Japan? Japanese GDP in 2010 was 480 trillion yen (U.S. GDP, again, was $14.5 trillion). The exchange rate in 2010 was 87.8 yen.

How the episode is likely to affect the economy measured gdp : Earthquakes and GDP: Suppose the rural part of a country is hit by a major earthquake that destroys 10 percent of the country's housing stock.

What are the it roles and policies and procedures : In this section you must include details such as the IT roles in the organisation; the responsibilities of these roles and the services perform.

Discuss how contextual changes in technology : Case - General Electric Medical Systems, 2002. Discuss how contextual changes in Technology and Customer Behavior. What is the gross margin

What counts as gdp : What counts as GDP (I)? GDP rises by the $5,000 amount of your tuition payment. This is the purchase of a service (education) that is produced this semester.

Show the masks in longest mask order using cidr format : A packet is waiting at router R4 for forwarding. If the next-hop was a "direct delivery", which of these three networks is the destination network?

Amount of sarah monthly loan payment : By how much would switching from mortgage A to the new opportunity reduce the amount of Sarah's monthly loan payment?

Where did sustained economic growth first begin : When and where did sustained economic growth first begin? How much inequality in per capita income was there throughout the countries of the world a thousand.

Monthly payments would brenna need to make to wheelz : If Wheelz would let her make equal monthly payments of $920 at a monthly interest rate of 1.35 percent and if her first payment to Wheelz would be in 1 month

User Account

All Pages