Explain How Each of the Following Transactions Would Affect GDP

question 137

Essay

Explain how each of the following transactions would affect GDP for the current year.Which spending categories are affected?
(A)Ford has 10,000 newly produced cars left over at the end of the year and adds them to its inventory.
(B)The state of California repaves Highway 80.
(C)The federal government decides to increase welfare payments.
(D)You take a trip to Mexico for spring vacation.

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Definitions:

Negative Events

Occurrences that are harmful, undesirable, or lead to negative outcomes for an individual or group.

Feelings

Emotional states or reactions that are subjectively experienced by an individual.

Memory

The cognitive process of encoding, storing, and retrieving information, allowing experiences and knowledge to influence future actions and thoughts.

Dialecticism

A philosophy or worldview that emphasizes the concept of change and the interdependence of opposites within the universe or in human reasoning.