For items 7-9, predict what will happen to the real GDP given the conditions. 7. Mothers increase the time they spend doing housework by 5% for every birth of a child. 8. More families qualify for and receive conditional cash transfer grants. 9. The government spent 12% more on the construction and repair of hospitals due to the pandemic.PROBLEM SET 1 Before proceeding, please write only your student number in the upper left-hand corner of your answer sheet. The file name of your submission should be [your student number]_PS1. Once finished, upload your output in the designated submission bin. Do your best for there will only be 1 attempt allowed for each problem set. Good luck! Read the questions carefully and write the letter of the correct answer. 1. Which of following is not true about the GDP? a. The GDP only measures current production. b. Transfers and sales of goods produced in another period are not included in the GDP. c. The GDP measures the total production in a 2-year term. d. The GDP takes into account market value only. 2. Which of the following is true about the GNP? a. The GNP and the GDP are equal. b. The difference between the GNP and GDP is the statistical discrepancy. c. The GNP is equal to the GDP less net factor income from abroad. d. The GNP includes in its measurement output produced by OFWs. 3. Which of the following is true about the statistical discrepancy? a, The statistical discrepancy is equal to the difference between the value of the income approach and expenditure approach. b. The statistical discrepancy is equal to the sum of the operating surplus and the gross domestic income. c. The statistical discrepancy is used to assess the correctness of the value of the GDP in determining the growth of an economy. d. Both a and c. For items 4-6, refer to the situation below. Every quarter, Mila sends PhP 160,000 of her income to her family in the Philippines, from the US. Half of this amount is spent on her family's needs including food, water, clothing, and electricity. Meanwhile, the other half is distributed among these three: her mother's life insurance, Mila's PAG-IBIG and PhilHealth contributions, and any remaining funds are deposited in her mother's savings account. 4. Which of these is/are included in the GDP computation? a. The PhP 160,000 Mila sends every quarter b. The amount spent on Mila's family's needs c. Mila's PAG-IBIG and PhilHealth contributions d. All of the above 5. PhilHealth released a new advisory on adjusted premium rates and thus Mila's annual contribution increased by 0.5% How will this affect the GNP? a. The GNP will also increase by 0.5% b. The GNP will decrease by 0.5% c. The GNP will increase by 2% d. It will not affect the GNP. 6. What will happen if Mila reduces her remittances by 2%? a. The GDP and GNP will increase. b. The GDP and GNP will decrease. c. Only the GDP will increase. d. Only the GNP will decrease