Calculate addition to gross domestic product: The following transactions take pl

Question

Calculate addition to gross domestic product:

The following transactions take place in 2000 1. An elderly couple go to the movies and pay $120 for the tickets. 2. A family sells numerous knick-knacks at a garage sale for $95. 3. A young executive buys 100 shares of IBM for $8,000. 4. A college student receives $600 from his parents. 5. A young couple down on their luck receive food stamps worth $180. 6. A plumber performs work for a neighbor and receives $100 in cash that he doesn't record in his company's records 7. A physician operates on a friend's husband and charges $1,500 for the operation instead of her usual $4,000. 8. A teenager paints the porch on his parents' house. The paint cost $85. The cost of hiring a professional to do the job would have been $400 9. A high school graduate works a summer job and makes $6,000 10. The Federal Reserve Bank sells a bond for $1,500. The addition to gross domestic product is

Explanation / Answer

The following transactions will be added to the GDP:

1. An elderly couple go to the movies and pay $120 for the tickets - $120

7. Operation done by physician on a friend's husband - $1500

8. The cost of the paint - $85

9. A high school graduate works a summer job and makes money - $6000

Total- $7705

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