Determine the effect of each of the following on U.S. nominal GDP:
(a) A fisherman catches one fish and sells it to you for $100 (you eat it raw).
(b) A fisherman catches one fish and sells it to a restaurant, but the fish rots in the restaurant and leads to no additional sales of fish meals.
(c) A fisherman catches one fish and sells it to a Japanese restaurant in the U.S. for $100. The restaurant then serves you a sushi meal for $150.
(d) An Apple factory based in Hong Kong produces a computer and sells it to the U.S. government.
(e) Boeing produces a new jet and sells it to Madonna for $200 million. (f) General Motors produces a new jet engine and sells it to Boeing for $10 million.
(g) Boeing produces a new jet and sells it to British Airways for $200 million.
h) Boeing produces a jet and sells it to the U.S. Army for $200 million.
(i) The U.S. Army sells one of its used jet planes to Delta Airlines for $20 million. 3
(j) People get (somewhat) tired of eating out and cook excellent paella at home (by following instructions on youtube) once a month instead of going to McDonaldâs. (k) The average rental price of housing drops by 30%.
(l) Taxes on capital income are abolished.
Determine the effect of each of the following on U.S. nominal GDP:
(a) A fisherman catches one fish and sells it to you for $100 (you eat it raw).
(b) A fisherman catches one fish and sells it to a restaurant, but the fish rots in the restaurant and leads to no additional sales of fish meals.
(c) A fisherman catches one fish and sells it to a Japanese restaurant in the U.S. for $100. The restaurant then serves you a sushi meal for $150.
(d) An Apple factory based in Hong Kong produces a computer and sells it to the U.S. government.
(e) Boeing produces a new jet and sells it to Madonna for $200 million. (f) General Motors produces a new jet engine and sells it to Boeing for $10 million.
(g) Boeing produces a new jet and sells it to British Airways for $200 million.
h) Boeing produces a jet and sells it to the U.S. Army for $200 million.
(i) The U.S. Army sells one of its used jet planes to Delta Airlines for $20 million. 3
(j) People get (somewhat) tired of eating out and cook excellent paella at home (by following instructions on youtube) once a month instead of going to McDonaldâs. (k) The average rental price of housing drops by 30%.
(l) Taxes on capital income are abolished.
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