RQCh7 - thus fluctuation in actual production (GDP +...

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Suggested answers to selected Review Questions: Ch. 7 1.10 Value of house built in 2000: No/ should NOT be included in GDP of 2009. Value of service: Yes/ should be included in GDP of 2009. 2.3 a. decrease b. decrease c. increase 2.4 household production increases during a recession; household production decreases during a expansion.
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Unformatted text preview: thus fluctuation in actual production (GDP + Household production) is less than fluctuation in (measured) GDP alone. 3.3 a. Real GDP 2009: (100X$50)+ (100X$2)+ (50X$30) = $6,700 Real GDP 2010: (100X$50)+ (120X$2)+ (65X$30) = $7,190 b. (($7,190-$6,700)/ $6,700)x100% = 7.3% 4.3 GNP would be smaller than GDP....
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This note was uploaded on 04/22/2010 for the course ECONOMICS ECON1002 taught by Professor None during the Spring '10 term at Hong Kong Institute of Vocational Education.

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