A) DEFINITION OF GDP

For each of the following transactions, determine whether the transaction can be counted as the GDP of the United States of the year 2010. Briefly explain your answer, i.e. why and why not?

1. John sold a year-2000 Ford Taurus to Mary for $1000 in June 2010
2. Mcdonald fast food chain bought $4,000 worth of ground beef in Dec 2010
3. Dell produced $4m worth of computers in Osaka, Japan in June 2010
4. Janet, a housewife, cooked and cleaned for her family all year long

B) EXPENDITURE APPROACH

For each of the following transactions,

1) Determine whether it should be included in the calculation of GDP using the expenditure approach and;

2) If the answer is yes, which component of expenditure should it be included, if the answer is no, briefly explain why.

• John bought 1000 shares of Microsoft stocks at $50 per share
• Honda built a factory plant worth $1 million in Detroit
• Karl received $100 in unemployment benefits
• Jane, a Canadian, spent $500 in NYC on her last visit.
• Walmart had an increase of $1 billion worth of unsold goods in its warehouse at the end of the year.

I NEED HELP ANSWERING THESE QUESTIONS ABOVE