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Determine the effect of each of the following on U.S. nominal GDP: (a) A fisherman catches one fish and sells it to you for
Determine the effect of each of the following on U.S. nominal GDP: (a) A fisherman catches one fish and sells it to you for $40 (you eat it raw). (b) A fisherman catches one fish and sells it to a restaurant, but the fish rots in the restaurant and leads to no additional sales of fish meals. (c) A fisherman catches one fish and sells it to a Japanese restaurant in the U.S. for $40. The restaurant then serves you a sushi meal for $80. (d) An Apple factory based in Hong Kong produces a computer and sells it to the U.S. government. (e) Boeing produces a new jet and sells it to Madonna for $250 million. (f) General Motors produces a new jet engine and sells it to Boeing for $9 million. (g) Boeing produces a new jet and sells it to British Airways for $270 million. (h) Boeing produces a jet and sells it to the U.S. Army for $270 million. (i) The U.S. Army sells one of its used jet planes to Delta Airlines for $40 million. (j) People get (somewhat) tired of eating out and cook excellent paella at home (by following instructions on youtube) once a month instead of going to McDonald's. (k) The average rental price of housing rises by 15%. (1) Taxes on capital income are abolished.
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