In Each of the Following Cases, Indicate If GDP Is

question 86

Short Answer

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

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Definitions:

Abnormal Return

The difference between the actual return of an investment and the expected return based on the risk and market's overall returns.

Sales Increase

An upward movement in the quantity sold or the revenue generated from the sale of a product or service over a specific period.

Beta

A measurement of a stock's volatility compared to the overall market volatility, indicating its relative risk.

Annualized Return

Annualized Return indicates the geometric average amount of money earned by an investment each year over a given time period.