For each parts, determine whether the transaction will contribute to nominal GDP
ID: 1138371 • Letter: F
Question
For each parts, determine whether the transaction will contribute to nominal GDP this year. On the line at the end of each transact write YES or NO. Answer each part of the question based only on the information provided (i.e. don’t make any additional assumptions). Consider each part independently. Provide support for your answer.1a) Last weekend you stopped at Home Depot and purchased some paint, then volunteered to pain the walls off your church _______
1b) Two years ago you purchased five sweatshirts at $20 each that say “Chicago Cubs - World Series Champions”. Since they are not dated, after the Chicago Cubs win the World Series this year, you resell your sweatshirts to fans for $50 each: ________ For each parts, determine whether the transaction will contribute to nominal GDP this year. On the line at the end of each transact write YES or NO. Answer each part of the question based only on the information provided (i.e. don’t make any additional assumptions). Consider each part independently. Provide support for your answer.
1a) Last weekend you stopped at Home Depot and purchased some paint, then volunteered to pain the walls off your church _______
1b) Two years ago you purchased five sweatshirts at $20 each that say “Chicago Cubs - World Series Champions”. Since they are not dated, after the Chicago Cubs win the World Series this year, you resell your sweatshirts to fans for $50 each: ________
1a) Last weekend you stopped at Home Depot and purchased some paint, then volunteered to pain the walls off your church _______
1b) Two years ago you purchased five sweatshirts at $20 each that say “Chicago Cubs - World Series Champions”. Since they are not dated, after the Chicago Cubs win the World Series this year, you resell your sweatshirts to fans for $50 each: ________
Explanation / Answer
Nominal GDP will include all the current changes in the market prices that have been occurred during the current year due to inflation or deflation.
Answer of 1a
No, because this work or social work doesn't include any money. It is an social act. So, it doesn't include in country's nominal GDP.
Answer of 1b
No, this transaction will also not included in nominal GDP because the prices of the t-shirt increases not due to inflation but other situation i.e., Chicago cubs win the world championship, this will increase it's merchandise price High.
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