You buy 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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According to the classical model shown above, an autonomous decline in investment shifts the investment schedule to the left. Furthermore, the equilibrium interest rate declines. Distance A describes an interest rate induced
a. decline in saving, which is an equal increase in consumption. b. increase in investment. c. decrease in investment. d. decline in saving, which exceeds the increase in consumption.
Producer surplus is the sum of the profits earned by all firms in a market
Indicate whether the statement is true or false
Total utility always decreases when additional amounts of a commodity are consumed
a. True b. False Indicate whether the statement is true or false
What effect does the following transaction have on the U.S. balance of payments?(Choose the proper debit and credit entries.) Colgate Inc (U.S.) receives profits from its foreign affiliates. Payment is made in U.S. dollars
a. Debit the U.S. financial account; credit the U.S. current account. b. Credit the U.S. financial account; debit the U.S. current account. c. Debit the U.S. financial account; credit the U.S. financial account. d. Credit the U.S. financial account; debit errors and omissions.