Problem Set 3-solutionsECON 101 Fall 2017You may work on the problem set individually or with up to 3 of your classmates. Ifyou choose to work with a group, you all need to be attempting the problems anddiscussing them together or you will miss out on learning the concepts, which is theentire point of doing these problem sets. You may submit an assignment individually(including the names of those students you worked with) or you may submit as a groupmaking sure that all of your names are clearly indicated at the top of the first page andadded on Gradescope.1.In one sentence or less, what happens to GDP and its components (use the expenditure method) inthe following situation: Bill gets his pension check from the federal government and buys a watchmade in China for $100?
2._______ (True/False; Explain) If Jane buys a brand new 2016 car today, 2017 GDP does not change.
3.Which of the following questions would studied primarily by macroeonomists?