Question

1. St. Louis will host the NHL All-Star game this weekend which is expected to be a boost for the economy.  Assume for simplicity that we are analyzing GDP only for St. Louis.  For each of the following scenarios, first determine if the transaction is going to be included in GDP or not.  Then if you are including it, categorize the transactions as one of the four components of GDP expenditure.  You may assume all goods are made in St. Louis: (Note, if not included, it won’t have a component)

1. To assist with traffic flow, the city council has hired a company to replace stop signs with camera equipped signal lights.
2. In attempt to fend off boredom during stay-at-home orders, Alex orders a new video game off Amazon.
3. Brandon still wanted a hard copy of the textbook, so I put him in touch with a student who took the course in the spring so he could buy their book
4. To help with researching a Covid-19 vaccine, St. Louis University purchased a new blood plasma centrifuge.  
5. While studying abroad in Madrid this spring, Jeff really missed American snacks, so he ordered a box of Hostess Cupcakes that he had shipped to his host family.
6. Even though not many people are buying new cars right now, car companies are still producing them because of labor contracts with local unions.  They are going to hold the cars as inventory for the rest of this year until they sell next year.  
7. Construction on a new home just started down the street from me (assume it will be completed this year).
8. I was playing catch with my son this past weekend, and his baseball glove split right on the palm.  I had to order him a new one today from Rawlings today.
9. The glove I got for my glove is the same one that the Dominican Republic national team ordered in bulk from Rawlings in January when they still anticipated playing in the Olympic qualifying tournament.
10. To assist in helping restaurants who have lost money due to the Coronavirus, St. Louis County Council passed a measure to use their tax revenue to fund a restaurant resuscitation measure.  

2.Assume an economy with three sectors of production:  shirts, calendars, and baseballs.  Find nominal and real GDP for each year in the chart below.  Assume 2014 is the base year.

Year	Price of Shirts	Quantity Shirts	Price of Calendars	Quantity Calendars	Price of Baseballs	Quantity Baseballs	Nominal GDP (Total)	Real GDP (Total)
2011	$11.00	60	$8.25	20	$2.50	200
2012	$11.50	70	$8.75	20	$2.60	270
2013	$11.50	55	$9.50	13	$3.75	315
2014	$12.50	75	$15.00	15	$3.00	400
2015	$13.00	95	$12.00	22	$3.25	420

3.Complete the following table then draw the complete circular flow diagram for each row:  (Use the abbreviations. Each row is independent of the others)

Y	C	I	G	T	S	NX
	3000	700		350	700	0
2500	1700		500	300		0

Answer 1