For each of the following transactions, determine the contribution to the current
year’s GDP. Explain the effects on the product, income, and expenditure
On January 1, you purchase 10 gallons of gasoline at $2.80 per gallon. The
gas station purchased the gasoline the previous week at a wholesale price
(transportation included) of $2.60 per gallon.
Colonel Hogwash purchases a Civil War–era mansion for $1,000,000. The
broker’s fee is 6%.
A homemaker enters the workforce, taking a job that will pay $40,000 over
the year. The home- maker must pay $16,000 over the year for professional
child care services.