Calculate the Contribution to GDP That Would Be the Result

question 86

Essay

Calculate the contribution to GDP that would be the result of each of the following transactions:
(a)The government purchases an airplane for $6 million.
(b)A citizen sells a used car for $6,000.
(c)A citizen sells a used car to a dealer for $6,000,who resells it to a consumer for $7,500.
(d)A citizen sells a bond for $1,000 that they bought last year for $600.
(e)The government issues a social security check for $1,250 (ignore the administrative costs of issuing the check).

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Definitions:

Net Worth

The total value of all assets a person or entity owns minus the total value of all its liabilities.

Medicaid

A government-sponsored insurance program in the United States providing health coverage to individuals and families with low income and resources.

Range

The difference between the highest and lowest values in a set of numbers.

Uninsured Senior Citizens

Individuals over a defined age, often 65 and above, who do not have medical insurance coverage.