1. What components of GDP (if any) would each
of the following transactions affect? Explain.
a. A family buys a new refrigerator.
b. Aunt Jane buys a new house.
c. Ford sells a Mustang from its inventory.
d. You buy a pizza.
e. California repaves Highway 101.
f. Your parents buy a bottle of French wine.
g. Honda expands its factory in Marysville,
A= a, b, c, d, f
When they buy a new fridge they are contributing on the economy because its new, with the house it’s the same thing, is a new house so it contributes the economy, and When ford sells a car it’s the same as the two cases above, it’s a new car so it counts as GDP. A pizza is a final product so it is counted as GDP, and obviously you won’t buy an opened bottle of wine so it contribute the economy as well.
3. As the chapter states, GDP does not include
the value of used goods that are resold.
Why would including such transactions make
GDP a less informative measure of economic
because it will be as counting double the product, so only the first sale is counted in the GDP
9. When deciding how much of their income to
save for retirement, should workers consider
the real or the nominal interest rate that their
savings will earn? Explain.
You would want to use the real GDP because it’s a more accurate GDP, it gives you an idea of how the inflation is working on the economy and that way a better idea of how much money to save CAPITULO 24 PROBLEMA 7
The New York Times cost $0.15 in 1970 and $2.00 in 2009. The average wage in manufacturing was $3.23 per hour in 1970 and $20.42 in 2009. a. By what percentage did the price of a
R= ($2.00 − $0.15)/$0.15 x 100% = 1233%.
b. By what percentage did the wage rise?
R= ($20.42 − $3.23)/$3.23 x 100% = 532%.
c. In each year, how many minutes does a
worker have to work to earn enough to buy a
R= In 1970: $0.15/($3.23/60) = 2.8 minutes.
In 2009: $2.00/($20.42/60) =...
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