Hw1 - Student Name:_ Sonoma State University Department of...

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Student Name:_____________________________________________________ Sonoma State University ECONOMICS 304 Department of Economics Florence Bouvet Assignment 1 –Chapter 2 Due in class on September 8 th , before the lecture starts 1) By how much does GDP rise in each of the following scenarios? Explain a) A computer company buys parts from a local distributor for $1 million, assembles the parts, and sells the resulting computers for $2 million. b) a real estate agent sells a house for $200,000 that the previous owners had bought ten years earlier for $100,000. The agent earns a commission of $6000. c)During a recession, the government raises unemployment benefits by $100 million d) A new European airline purchases $50 million worth of airplanes from the American company Boeing. e) A store buys $100,000 of chocolate from Belgium and sells it to consumers in the United States for $125,000.
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2) Consider an economy that produces and consumes pizza (nondurable good), jeans (durable good) and buzz haircuts (service). Use the data below:
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Hw1 - Student Name:_ Sonoma State University Department of...

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