Discussion Problems Students Copy.docx - ECON 2030 Principles of Macroeconomics Spring 2020 Class Discussion Question Set 1 1 Ryan lives in an apartment

Discussion Problems Students Copy.docx - ECON 2030...

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ECON 2030: Principles of Macroeconomics Spring 2020Class DiscussionQuestion Set 11. Ryan lives in an apartment where he pays $7,000 a year in rent. Sarah lives in a house that could be rented for $21,000 a year. How much do these housing services contribute to GDP?a. $21,000b. $28,000c. $7,000d. $14,0002. The purchase of rice produced this period is included in GDP if the rice is3. Al’s Aluminum Company sells $1 million worth of aluminum to Shiny Foil Company, which uses the aluminum to make aluminum foil. Shiny Foil Company sells $4 million worth of aluminum foil to households. The transactions just described contribute how muchto GDP?4. One bag of flour is sold for $1.00 to a bakery, which uses the flour to bake bread that is sold for $3.00 to consumers. A second bag of flour is sold for $1 to a grocery store who sells it to a consumer for $2.00. Taking these four transactions into account, what is the effect on GDP?
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  • Spring '08
  • Thomassen
  • Inflation, gross domestic product, Consumer price index, GDP deflator

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