1. Which component of GDP will be affected by each of the following transactions involving Ford Motor Company? If you believe that none of the components of GDP will be affected by the transactions, briefly explain why

a)You purchase a new Ford Escape Hybrid from a Ford dealer.

b)You purchase a 2010 Ford Escape Hybrid from a friend.

c)Ford purchases door handles for the Escape from an auto parts manufacturer in Indiana.

d)Ford produces 1,000 Escapes in a factory of Missouri and ships them to a car dealer in Shanghai, China.

e)Ford purchases new machine tools to use in its Missouri Escape factory.

f)The state of Missouri builds a new highway to help improve access to the Ford Escape plant.

2.Is the value of a house built in 2000 and resold in 2013 included in the GDP of 2013? Briefly explain. Would the services of the real estate agent who helped sell (or buy) the house in 2013 be counted in GDP for 2013? Briefly explain.

3.Discuss briefly the likely effect of each of the following on the unemployment rate:

a.The length of time workers are eligible to receive unemployment insurance payments doubles.

b.The minimum wage is abolished

c.Most U.S. workers join labor unions.

d.More companies make information on the job openings easily available