Our experts can answer your tough homework and study questions. b) steel purchased by aircraft manufacturers. i. Luig's Pizza buys 30 pounds of mozzarella cheese, holds it in inventory for one month, and then uses it to make pizza (which it sells). After several quarters of a severe recession, explain why there might be a decrease in the official unemployment rate. Mary buys a used book for $5 at a garage sale. d) both "b" and "c". a) your purchase of your neighbor's Subaru. © 2003-2020 Chegg Inc. All rights reserved. | e) the purchase of a new computer. b) not in the labor force. c. Company A successfully launches a hostile takeover of company B, in which company A purchases all the assets of company B. d. Your grandmother wins six million in the lottery. (B) Counted:- Because it is counted as investment in construction. j. O a) The government wants to instill optimism. It is the aggregate of market values of the final goods and services produced in an economy during a financial year. c) A chef is paid to cook meals for the President at the White House. answer! Question: Will each of the following transactions be included in GDP for the United States? g. The government pays out Social Security benefits. The Gross Domestic Product is an important measure of determining the economic growth of the country. Reason: In all the above cases the chef is providing his services which is leading to value addition and resulting in an economic activity. This will thus constitute income in the hands of the chef and will thus get directly included in the GDP calculation. Earn Transferable Credit & Get your Degree, Get access to this video and our entire Q&A library. Maggis Bought A New Play Gym Set For Her Day Care Business. Ob) Rising wages in an expansion reduce the quantity of labor demanded. a) A chef who owns a catering business is paid to cater a private party in someone's home. In February 2010, Amanda buys a ticket to visit a zoo in Florida. Sciences, Culinary Arts and Personal d) a smart phone purchased by a college student. Determine whether or not the goods would be... | ||For China ||For U.S ||For China ||For U.S... How will a decrease in AS affect nominal GDP? e) none of the above. Which of the following transactions is not included in GDP? Our experts can answer your tough homework and study questions. b) steel purchased by aircraft manufacturers. a. Jennifer works as a marriage counselor and her clients pay her on a per-hour basis for her services. Question: Which of the following transactions is not directly included in GDP? All rights reserved. Sciences, Culinary Arts and Personal Services, Gross Domestic Product: Definition and Components, Working Scholars® Bringing Tuition-Free College to the Community. True False. Frictional unemployment is considered good, since that means people may be seeking jobs that better match their skill sets. An example of an intermediate good is: O a) wages paid to an employee. a) your purchase of your neighbor's Subaru. Consider an economy that produces only two goods :... National Income Accounting in Economics: Definition, Uses & Equation, The Circular Flow of Income: Definition & Model, Crowding Out in Economics: Definition & Effects, Measuring the Money Supply: Explanation and Examples, Gross Domestic Product: How to Calculate Real GDP, What Is Inflation Rate? & He would like to work but hasn't been looking for a job due to his poor prospects of finding work. Explain your answers. General Motors issues new shares of stock to finance the construction of a plant. b. Jason provides plumbing services for a plumbing company and receives an hourly wage from the company for his services. Suppose two countries, Country A and Country B,... What are the limitations of evaluating GDP? B) A drug addict spends two months in a drug rehabilitation centre. Andy is: a) in the labor force, and unemployed. For providing the services: either for catering a party, cooking meals at a restaurant, or cooking meals for the president, the chef is paid in return for offering his services. Ob) the hiring of a police officer. Services, GDP Deflator: Definition, Formula & Example, Working Scholars® Bringing Tuition-Free College to the Community. Which of the following transactions would be included in GDP? Become a Study.com member to unlock this Nick buys $5,000 worth of stock in Microsoft.

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