For each of the following transactions, determine the contribution to the current year's GDP. Explain the effects
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a. On January 1, you purchase 10 sheets of plywood at $20 per sheet. The lumber store purchased the plywood the previous week at a wholesale price (transportation included) of $15 per sheet.
b. Colonel Hogwash purchases a West Vancouver mansion for $1,000,000. The broker's fee is 6%.
c. A home maker enters the workforce, taking a job that will pay $20,000 over the year. The home maker must pay $8000 over the year for professional child-care services.
d. The Japanese build an auto plant in Quebec for $100,000,000, using only local labour and materials. {The auto plant is a capital good produced by Canadians and purchased by the Japanese.)
e. You are informed that you have won $3,000,000 in Lotto 6/49, to be paid to you, in total, immediately.
f. The lottery corporation pays you an additional $5000 fee to appear in a TV commercial publicizing the provincial lottery.
g. Discount Car Rentals replaces its rental fleet by buying $100,000,000 worth of new cars from General Motors. It sells its old fleet to a consortium of used-car dealers for $40,000,000. The consortium resells the used cars to the public for a total of $60,000,000. Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Related Book For
Macroeconomics
ISBN: 978-0321675606
6th Canadian Edition
Authors: Andrew B. Abel, Ben S. Bernanke, Dean Croushore, Ronald D. Kneebone
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