Trusted by Students Everywhere
Why Choose Us?
0% AI Guarantee

Human-written only.

24/7 Support

Anytime, anywhere.

Plagiarism Free

100% Original.

Expert Tutors

Masters & PhDs.

100% Confidential

Your privacy matters.

On-Time Delivery

Never miss a deadline.

Indicate if the following is part of the current GDP

Business Dec 27, 2020

Indicate if the following is part of the current GDP. If so, indicate which component of GDP is impacted. If not, explain why not.

a. Melissa buys a shirt for $50 from Goodwill.

b. Philip pays a lawn care service $300/month.

c. Chris is a stay at home dad who takes care of the children. He is not compensated for his time.

Expert Solution

Any expenditure incurred by a residential individual within a specific year is considered to be a part of the GDP of that year.

1. Melissa buys a shirt for $50 from Goodwill: An expenditure incurred on a shirt will be recorded as consumption expenditure that will increase the GDP by $50.

2. Philip pays a lawn care service $300/month: It is an expenditure to avail lawn care service due to which it is a part of consumption expenditure and leads to an increase in the GDP level by $300/month, which is $36,000 in a year.

3. Chris is a stay at home dad who takes care of the children. He is not compensated for his time: This activity will not be considered as economic activity as Chris does not get income to take care of the children. Therefore, there is no impact on GDP.

Archived Solution
Unlocked Solution

You have full access to this solution. To save a copy with all formatting and attachments, use the button below.

Already a member? Sign In
Important Note: This solution is from our archive and has been purchased by others. Submitting it as-is may trigger plagiarism detection. Use it for reference only.

For ready-to-submit work, please order a fresh solution below.

Or get 100% fresh solution
Get Custom Quote
Secure Payment