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2 December, 08:34

In each of the following cases, determine how much GDP and each of its components is affected (if at all).

A. Debbie spends $300 to buy her husband dinner at the finest restaurant in Boston.

B. Sarah spends $1200 on a new laptop to use in her publishing business. The laptop was built in China.

C. Jane spends $800 on a computer to use in her editing business. She got last year's model on sale for a great price from a local manufacturer.

D. General Motors builds $500 million worth of cars, but consumers only buy $470 million worth of them.

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  1. 2 December, 10:17
    0
    A) The GDP increases by $300 since a dinner is considered a final service, it is part of consumption.

    B) The GDP decreases by $1,200 since the laptop is imported from China, imports reduce net exports.

    C) The GDP is not affected since the computer was manufactured last year.

    D) The GDP increases by $500 since the cars are final products ($470 million are considered consumption and $30 million investment).
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Home » Business » In each of the following cases, determine how much GDP and each of its components is affected (if at all). A. Debbie spends $300 to buy her husband dinner at the finest restaurant in Boston. B.
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