In Each of the Following Cases, Indicate If GDP Is

question 143

Essay

In each of the following cases, indicate if GDP is affected, under what category and what happens to GDP.
Ja. You buy a used textbook from one of your classmates.
Jb. You buy a new umbrella.
Jc. Ella, a French tourist, has a haircut in a salon in San Francisco.
Jd. New Orleans cleans up after a devastating hurricane.
Je. Avon Barksdale buys a shipment of cocaine from Colombia.
Jf. You pay a monthly rent to Mrs. Wong, your landlady.
Jg. Kiyah spends two hours baby-sitting her little brother.
Jh. You hire Bruce Tree Service to mow your lawn every week.
Ji. Jodi purchases her first home, a 1980s fixer-upper.
Jj. The president of Ohio State University is given a salary increase.

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Definitions:

Fair Value Method

An accounting strategy used to assess the current market value of an asset or liability rather than its historical cost.

Unrealized Loss

A loss that has occurred on paper due to a decrease in the value of an investment or asset, but has not been realized through a transaction.

Fair Value Adjustment

A process of adjusting the book value of an asset or liability to reflect its current market value, used in accounting to ensure the fair presentation of financial statements.

Trading Portfolio

A collection of financial assets, such as stocks or bonds, held by an institution or individual for the purpose of realizing profits from short-term price movements.