If you buy a new water skis and other new equipment for $2,500 and take a week off of your job, where you earn $1,000 a week, to go water skiing. The equipment you purchased was all produced in the United States
You think that the week was worth $4,000. As a result of your vacation, GDP changes by how much?
GDP changes by only the $2,500 you spent on the water skis and other equipment.
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Explain what economists mean when they characterize the income tax system as progressive
What will be an ideal response?
The primary difference between the neoclassical growth model and endogenous growth models is that
a. the neoclassical growth model assumes that technology is exogenous. b. endogenous growth models attempt to explain movements in technology within the model. c. changes in savings rates can affect growth in the long-run in endogenous growth models. d. both a and b. e. all of the above.
Assume a marginal propensity to consume of three-fourths. If private planned investment decreases by $10 billion and government spending increases by $13 billion, the national income will increase by
a. $4 billion. b. $12 billion. c. $3 billion. d. $2.25 billion.
A program of protection that results in preserving jobs in certain industries
A. maintains full employment at lower cost than any other program or policy. B. lowers average pay in the protected industries. C. improves living standards for the average person in that country. D. often does so at a cost that is much higher than the average income of persons in those industries.