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Hello I need your help, thank you 2. Activities included (and not included) in the calculation ofGDP The gross domestic product (GDP) of the United
Hello I need your help, thank you
2. Activities included (and not included) in the calculation ofGDP The gross domestic product (GDP) of the United States is defined as the all in a given period of time. Based on this definition, indicate which of the following transactions will be included in (that is, directly increase) the GDP of the United States in 2020. 2020 GDP Scenario Included Excluded Parkway Motors, a U.S. automobile company, produces a convertible at a plant in Mexico on March 31, 2020. Parkway O O Motors imports the convertible into the United States on May 30, 2020. Using wood from a red maple tree on your Michigan property you make a birdhouse in 2020. A similar birdhouse sells O O for $55 in a craft store. Thickburger, a U.S. fast-food company, produces a double cheeseburger at one of its many locations throughout the O O midwest on January 31, 2020. It sells the double cheeseburger to a customer that same day. Sleepytown, a Finnish furniture company, produces a bed frame at a plant in Virginia on December 1, 2020. It sells the O O bed frame to a college student on December 28. Rotato, a U.S. tire company, produces a set of tires at a plant in Michigan on September 2, 2020. It sells the set of tires to Speedmaster for use in the production of a two-door coupe that will be made in the United States in 2020. (Note: O O Focus exclusively on whether production of the set of tires increases GDP directly, and ignore the effect of production of the two-door coupe on GDP.)5. Real versus nominal GDP Consider a simple economy that produces two goods: stickers and seltzers. The following table shows the prices and quantities of the goods over a three-year period. Stickers Seltzers Price Quantity Price Quantity Year (Dollars per sticker) (Number of stickers) (Dollars per seltzer) (Number of seltzers) 2019 260 2 160 2020 120 220 NN 2021 155 140 Use the information from the preceding table to fill in the following table. Nominal GDP Real GDP Year (Dollars) (Base year 2019, dollars) GDP Deflator 2019 2020 2021 From 2020 to 2021, nominal GDP , and real GDP The inflation rate in 2021 was Why is real GDP a more accurate measure of an economy's production than nominal GDP? Real GDP includes the value of exports, but nominal GDP does not. Nominal GDP is adjusted for the effects of inflation or deflation, whereas real GDP is not. O Real GDP is not influenced by price changes, but nominal GDP isStep by Step Solution
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