Quiz 7: Taking the Nations Economic Pulse
(a) The sale of used economic book will not affect anything on GDP. Thus there will no affect on GDP. (b)Smith has spent $500 for the medical of his son. This will increase the GDP. (c) The family lawn provided is not adding any revenue to GDP. Thus there will no affect on GDP. (d)The lawn services are purchased for the business purpose. This will increase the GDP. (e) In this the GDP will increase by $250 which is the sales commission. (f) It will not affect the GDP. (g) It will not affect the GDP because the damage is made in Florida. (h) It will not affect the GDP as the income has been earned in England and not in United States.
If the nominal GDP increased by 6% then we can assume that the current nominal GDP is 106. If the GDP deflator increased by 4 percent then we can assume that the current GDP deflator is 104 and the previous year GDP deflator is 100. Thus on the basis of this real GDP is calculated and shown below: The real GDP changed by 1.019 percent during this year.
The sale does not affect the GDP because the furniture was sold from the last year inventory. Inventories of last year don't affect the GDP of this year. Therefore there is no affect on GDP.