Solved

Calculate How Much GDP Would Change as a Result of Each

Question 63

Essay

Calculate how much GDP would change as a result of each of the following transactions:
(a)The government purchases an airplane for $6 million.
(b)A citizen sells a used car for $6,000.
(c)A citizen sells a used car to a dealer for $6,000,who resells it to a consumer for $7,500.
(d)A citizen sells a bond for $1,000 that they bought last year for $600.
(e)The government issues a welfare cheque for $1,250 (ignore the administrative costs of issuing the check).

Correct Answer:

verifed

Verified

(a)$6 million.Government purchases are v...

View Answer

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions