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Q1 Which of the following are included and which are excluded in calculating this years GDP. Explain in each instance. a. A
t Im trying to find something that Q2b. Interpret the following statements from newspapers in terms of the type of unemploym
Q2a. Consider the population of a small country, assuming that the number of people in each category is as follows:(5 marks)
1. In 1933 net priva A) the economy was expanding in that year. ivate domestic investment was minus $208 million. This meant
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10. The unemployment rate in an economy is 12 percent. The civilian labour force is 50 million. The number of employed worker
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Answer #1

1)a)Scholarship received would be excluded from GDP calculation as it is a part of transfer payment.

b)When a farmer decides to buy a new tractor, it would be included as part of GDP , in investment

c) Cashing of a saving bond would be a part of financial transaction and hence excluded from GDP.

d) Increase in inventories would be a part of investments or increased production and hence included in GDP.

e) Buying a grocery store would not be a part of GDP because it was already included in GDP the time it was newly constructed. This is buying of an old property and hence no value addition.

f) Buying a life insurance would be a part of the GDP because it is consumption done by the household and is a final good.

g) Purchasing of ingredients would be considered as an intermediary good and hence not part of GDP since it is used to make the final product.

h) Selling corporate bond would not be a part of GDP because it would come under financial transaction.

(As per HOMEWORKLIB RULES, the first question was to be answered)

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