Can someone help me get 31,32,34 following items would not be included in the GD

Question

Can someone help me get 31,32,34

following items would not be included in the GDP? (a) Donald Robertson undergoes brain surgery. (b) Greyhound purchases 100 GM buses (c) (d) (e) Bill Baumol buys a brand new Lexus Alan Blinder buys 100 shares of Microsoft stock. The IR S buys 1,000 desktop computers from Dell. (29) In the second quarter of 200X the U.S. GDP was $6,328 billion while the GDP was $5,1 the price level was: 02 billion. The price index used to "adjust" the GDP for changes in (a) 24. (b) 81. (c) 124. (d) 181 (e) $1,226 billion. Alpha Co. Beta Co. Gamma Co. $10,000,000 TR5,000,000 TR TR TC $2,500,000 Labor $1,750,000 750,000 TC Labor 4,000,000 IG 5,000,000 $,000,00002,000,000 1,000,000 Profit RM 2,500,000 Profit 500,000 Profit (30) Areadia is a smalcountry with only three fims. Alpha Co. produces and sells a final good. Beta Co. produces an intermediate good using a raw material produced by Gamma Co. The income statements of the three companies are shown above If one calculates Arcadia's GDP using the expenditure, income and value added approaches, one would obtain: (a) (b) (c) (d) (e) $17.5 million, $10 million and $7.75 million. $10 million, $2.5 million and $7.75 million. $17.5 million, $17.5 million and $17.5 million. S10 million, $10 million and $10 million. $10 million, $5 million and $2.5 million

Explanation / Answer

(31) (b)

Real income (RI) = (Nominal income / Price level) x 100

RI 20 years back ($) = (8,000 / 90) x 100 = 8,889

RI today ($) = (45,000 / 307) x 100 = 14,658

Increase in RI = ($14,658 / $8,889) - 1 = 1.649 - 1 = 0.649 = 64.9%

(32) (c)

Required reserves ($ billion) = Deposit x Reserve ratio = 720 x 10% = 72

Excess reserves ($ Billion) = Total reserve - Required reserve = 75 - 72 = 3

Maximum increase in money supply ($ Billion) = Excess reserves / Reserve ratio = 3 / 0.1 = 30

(34) (b)

Required reserves ($ billion) = Deposit x Reserve ratio = 700 x 10% = 70

Excess reserves ($ Billion) = Total reserve - Required reserve = 70 - 70 = 0

Therefore,

Maximum increase in money supply ($ Billion) = Purchase of government securities / Reserve ratio = 4 / 0.1 = 40

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