Question Description
Note: “Briefly explain” means a sentence or two.
1)
For each of the following, state which 2018 U.S. GDP category or categories (C, I, G, NX) are affected (if any) and whether 2018 U.S. GDP will rise/fall/stay the same. Briefly explain.
- Klay rents a house in Oakland, CA for $5,000 a month. The house was built in 2013.
- Kevin buys a 2017 Tesla Model S for $90,000 from a dealership. The car was purchased in 2018 but had never been sold before.
- Draymond buys a meal at a restaurant, Hakkasan, in San Francisco in 2018 for $1200. The corporate headquarters for Hakkasan in London, U.K.
- San Francisco spends $55 million in 2018 to upgrade public transportation around a new sports complex being built in 2018.
2) TrendyVille is a hypothetical country that produces and consumes three items: avocado toast, cold brew coffee, and poke bowls. The following table represents the prices and production levels for 2017 and 2018.
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