Please answer all parts to questions. I’m confused on all of these topics. Thank

Question

Please answer all parts to questions. I’m confused on all of these topics. Thanks. (5 points) What components of GDP (if any) would each of the following affect? Explain. 2. a. b. c. d. e. Aunt Jane buys a new house from a local builder. You pay a hairdresser for a haircut. Ford sells a Mustang from its inventory to the Martinez family. The federal government sends your grandmother a social security check. Your parents buy a bottle of French wine. (5 points) Fill in the blanks: Year Real GDP (in 200° dollars)?-(in current dollars)-(baseyear2000) 980 1990 2000 75 20,000 125 (5 points) Which of the problems in the construction of the CPI might be illustrated by each of the following situations? Explain. 4. the invention of cell phones the introduction of air bags in cars increased personal computer purchases in response to a decline in their price more scoops of raisins in each package of Raisin Bran greater use of fuel-efficient cars after gasoline prices increase a. b. c. d. e. 5. (5 points) Suppose that people consume only three goods, as shown in this tables Golf Balls 2017 price 2018 price Using a method similar to the CPI, compute the percentage change in the overall price 40

Explanation / Answer

(2)

(a) Aunt Jane buys a new house - Included in GDP as Gross Domestic Private Investment (Residential)

(b) You pay hairdresser for a haircut - Included in GDP as Personal Consumption Expenditure

(c) Federal Government sends social security check - Not included in GDP

(Being a transfer payment, this is excluded from GDP as nothing is received in return)

(d) Your parents buy a bottle of French wine - Not included in GDP

(Americans buying French goods is an Import, which is deducted from Exports (to arrive at net export))

NOTE: As per Chegg Answering Policy, first question is answered.

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.