ba 3300 exercise 1 topic 7 Flashcards
A Japanese firm sells a computer that was produced last year and held in
storage in anticipation of future sales
No effect (the production of the computer is already included in the GDP of the previous year, in particular it is counted as an increase in inventories, which are part of investment expenditures)
A Taiwanese household buys a used computer from a Japanese
household.
No effect (second-hand sales do not affect the production of good and services).
A Taiwanese household buys a new computer that was manufactured in
Japan
Increase (export).
) A Japanese household buys a stock.
No effect (financial securities transactions affect asset ownership not production).
A Japanese widower marries his housekeeper and stops paying her.
Decrease (wages previously paid for the service of cleaning are part of consumption expenditure).
A Japanese firm invests in new machines.
Increase (private investment in equipment)
A Japanese firm buys office space another firm has been using for several
years
No effect (the construction of the office space increased GDP in a previous year; reselling the office space doesn’t affect GDP).
The Japanese government pays unemployment benefits
No effect (transfers do not affect GDP).
The Japanese government decides to build apartments to be used for
affordable housing.
Increase (government investment).
A Taiwanese family moves into a vacant house in Japan. The house was
constructed 5 years ago
Increase (housing is treated as a service; either the additional GDP corresponds to the rent payments or if the house is owned by the family then it is estimated what the rent would be and the estimated amount is added to the GDP).
