Economics: The Basics 1st Edition by Mike Mandel

Exercise 2

Indicate whether each of the following events causes GDP to go up or down, all other things remaining equal.
a) Toyota builds a new car plant in the United States and reduces imports of its cars from Japan.
b) Toyota builds a new car plant in the United States, and a same size car plant run by Ford closes.
c) Apple hires engineers and programmers in the United States to help design the next generation of iPods.
d) Consumers pay for fewer haircuts, and use the extra money to buy iPods that are made in China.