2:40 K ECON 102 CHAPTER 6 GRADED A.... spending: 200; Exports: 100; Imports 120;

Question

2:40 K ECON 102 CHAPTER 6 GRADED A.... spending: 200; Exports: 100; Imports 120; Depreciation: 50 a) GDP is_ bNDP is . Circle the items which are NOT included in GDP? 2 points) a) construction of homes b) repairs I make to my garage c) the lumber and nails I buy to repair my garage d) the value of heroin sold on street coners e production of tires used in the new car I bought 6. Look at the following data for a small, faraway country with white sand beaches and swaying palm trees, whose currency is the Clamshell (Cl). Calculate its real GDP for each year and the percentage change in real GDP for 2015-to-2016 and 2016-to- 2017. (4 points) Ycar Nominal GDP Price Indca change 2016 10) eal GDP 2015 CI 100,000,000 90 NA 2016 CI 120,000,000 100 2017 CI 135,000,000 125 7. The country above had a population in 2017 of 2,000, and the exchange rate between the Clamshell and the U.S. dollar is CI 72 per $1.00. What is the country's per capita nominal GDP in 2017.. 3 points) a) expressed in Clamshells b) expressed in U.S. dollars Page 1 of 2 Calendar To Do Inbox

Explanation / Answer

5. GDP includes the value of final goods and services produced within an economy in a given period of time. Value of any intermediate goods is not counted in GDP.

A) Construction of homes is part of investment component of GDP. The value will be counted based on the rental value of your home.

B) Again, repairs you make to your garage is included in GDP as part of investment.

C) The lumbers and nails you buy to repair your garage isn't included in GDP as they are intermediate goods. Only the value of repaired garage would be counted.

D) The value of heroin sold isn't included in GDP as it is an underground economy transaction.

E) Production of tires used in the new car is not included in GDP as tires are intermediate goods.

Answer- C, D and E

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