What is the combined effect of these events

Assignment Help Business Economics

Reference no: EM131097623

Suppose that in 2013, geologists discover large reserves of oil under the tundra in Alaska. These reserves have a market value estimated at $50 billion at current oil prices. Oil companies spend $1 billion to begin exploratory pumping during that same year. In the process of loading some of the oil onto tankers at a port, one company accidentally creates a spill into a bay and ultimately pays $1 billion to other companies to clean it up. New workers spend $30 million on food, $200 million in new houses that are built, and $500 million in existing houses are sold. What is the combined effect of these events on GDP for the year? Show your work. Why is it not completely accurate in measuring the well-being of society? What does it not account for?

Reference no: EM131097623

Questions Cloud

Discussing the film as an interpretation of the play : Directions: For each question, write a one-page, single-spaced response, using quoted passages from the play (and, as needed, descriptions of parts of the film) to illustrate your answer. Each question is worth 50 points. You can also answer th..

Approach to gathering and structuring requirements : With offshore and ERP in mind, outline your approach to gathering and structuring requirements for this new system, including which roles you plan to engage and how you plan to collect, validate, and represent the requirements you elicit.

What transactions are not being consummated : Describe an adverse selection problem your company is facing. What is the source of the asymmetric information? Who is the less informed party? What transactions are not being consummated as a result of the information?

Administrative agency investigation of violations : Explain the relationship between administrative agency investigation of violations and the Fourth Amendment of the U.S. Constitution. Identify 5 federal, state, or local agencies that you may encounter in the field of accounting. Identify whether eac..

What is the combined effect of these events : Suppose that in 2013, geologists discover large reserves of oil under the tundra in Alaska. These reserves have a market value estimated at $50 billion at current oil prices. Oil companies spend $1 billion to begin exploratory pumping during that sam..

Computes the sum of the first n numbers : Using the six-instruction instruction set of this chapter, write an assembly program for the C code in Figure 8.16, which computes the sum of the first N numbers, where N is another name for D [9].

Consumption function-aggregate demand at current prices : Suppose the consumption function is C = $400 billion + 0.8Y and the government wants to stimulate the economy. By how much will aggregate demand at current prices shift initially (before multiplier effects) with. What will the cumulative AD shift be ..

Making economic or financial investment : Suppose that the city of New York issues bonds to raise money to pay for a new tunnel linking New Jersey and Manhattan. An investor named Susan buys one of the bonds on the same day that the city of New York pays a contractor for completing the first..

Characterize the page-fault rate : When a process ?rst starts execution, how would you characterize the page-fault rate? Once the working set for a process is loaded into memory, how would you characterize the page-fault rate?

User Account

All Pages