Grab a blank sheet of paper and try some GDP analysis on your own. Take a...

Grab a blank sheet of paper and try some GDP analysis on your own. Take a picture or scan your sheet, and upload it after you are finished. This contributes to your participation grade in the class.

Because it is counted as investment, why doesn't the purchase of earthmoving equipment from China by a U.S. corporation increase U.S. GDP?
Identify the immediate effect of each of the following events on U.S. GDP and its components:
- James receives a Social Security check.
- John buys an Italian sports car.
- Henry buys domestically produced tools for his construction company.

Upload your file below. Naming convention should be "Last Name_First Name."

Solutions

Expert Solution

1. Only net exports ( Exports- imports) are included in GDP. GDP consists of final value of goods and services produced within the borders of a country in a given year. The purchase of earthmoving equipment from China by a U.S. corporation is an import and cannot be included in GDP.

2. Social security checks are transfer payments from the government to individuals and does not creaste economic value. It is not included in GDP.

3. Consumption will increase and imports will increase. Only net exports are included in GDP. So this cancel out and there will be no change in GDP.

4. Purchase of tools are business investment so the investment component of GDP will increase. Included in GDP.

Rahul Sunny answered 2 years ago

Next > < Previous

Related Solutions

Grab a blank sheet of paper and try some GDP analysis on your own. Take a...

Grab a blank sheet of paper and try some GDP analysis on your own. Take a picture or scan your sheet, and upload it after you are finished. This contributes to your participation grade in the class. Because it is counted as investment, why doesn't the purchase of earthmoving equipment from China by a U.S. corporation increase U.S. GDP? Identify the immediate effect of each of the following events on U.S. GDP and its components: James receives a Social Security...

Grab a blank sheet of paper and try some inflation analysis on your own. Take a...

Grab a blank sheet of paper and try some inflation analysis on your own. Take a picture or scan your sheet, and upload it after you are finished. This contributes to your participation grade in the class. Because inflation increased by only 1.7% in 2008, the American Association of Retired Persons comments that this is “an unfortunate side effect of inflation, since Social Security payments, which are indexed to inflation, will increase by only 1.7% in 2008.” Comment on whether...

Grab a blank sheet of paper and try some inflation analysis on your own. Take a...

Use a blank sheet of paper and create a concept map comparing and contrasting mental health...

Use a blank sheet of paper and create a concept map comparing and contrasting mental health and mental illness. Identify the characteristics of both mental health and mental illness and how the concepts of mental health and mental illness may manifest during patient assessment.

Create a phase diagram for carbon dioxide (can take from online) onto a sheet of blank...

Create a phase diagram for carbon dioxide (can take from online) onto a sheet of blank paper and (i) label both axes (ii) label all areas (iii) explain what is meant by the triple point and draw it onto your diagram (iv) explain what is meant by the critical point and draw it onto your diagram (v) Now draw the corresponding phase diagram for water, explaining as fully as you can the reason for any differences from the diagram for...

This week take a single regular sheet of paper (or the tablet equivalent) and draw a...

This week take a single regular sheet of paper (or the tablet equivalent) and draw a line down the middle (length or width it doesn't matter). On the left of the divide: Draw a picture of a lipid bilayer and somewhere in the bilayer draw a model for a protein transporter that can transport NEGATIVELY charged ions from HIGH concentration (top) to LOW concentration (bottom). Represent respective ion concentrations. Try to represent what kinds of functional groups you expect to...

Take some time to build your own "Personal Balanced Scorecard." Rather than a Scorecard for a...

Take some time to build your own "Personal Balanced Scorecard." Rather than a Scorecard for a company, this scorecard will be about your own personal goals, and how you can measure your progress towards them. Think of each of the traditional four perspectives in a way that can apply to your own life: Internal (health) perspective: This perspective is about the physical and mental well-being of an individual. Measures from this perspective should emphasize how someone can improve or maintain...

what is GDP? What does it measure? What is calculated in GDP? (in your own words...

what is GDP? What does it measure? What is calculated in GDP? (in your own words )

Now please fill your homework to a blank A4 paper. Do not forget to write 1-...

Now please fill your homework to a blank A4 paper. Do not forget to write 1- What is a correlation in statistics? 2- What is the purpose of correlation? 3- What are differences between Spearman and Pearson correlation? 4- Why pearson and Spearmen correlation can differ? 5- What do you mean by rank correlation? 6a- What are the assumptions of pearson’s correlation coefficient itself? 6b- What are the assumptions of statistical significance-test for correlations? (see the file PSY214-03.ppt) 7- What...

create your own function that wraps it with try catch. Pass in the string to parse,...

create your own function that wraps it with try catch. Pass in the string to parse, and the name of the field, put some logging in the catch How do I do this? say with this code segment? void readStudents() { //Scanner class object declare Scanner readStudentFile = null; //try block begin try { //open file readStudentFile = new Scanner(new File(".\\src\\test\\student.txt")); //loop until end of file while(readStudentFile.hasNextLine()) { String stu = readStudentFile.nextLine(); String[] eachStu; eachStu = stu.split(" "); students.add(new Student(eachStu[0],...

Subjects