ECO - 252 Macroeconomics 4. For each of the following indicate if the 2010 real

Question

ECO - 252 Macroeconomics

4. For each of the following indicate if the 2010 real GDP is likely to increase, to decrease, or to remain the same, Ceteris Paribus.

a. Karen used to make her own house cleaning but in 2010 she hired a professional maid.

b. When John and Jennifer were both single, they lived in separate apartment and each paid $750 in rent. In 2010, John and Jennifer got married and bought a house that, according to government estimates, could be rented for $1,400.

c. In 2010, people decided to eat more at home and less at fancy restaurant.

d. Ralph used to mow his lawn. In 2010, he hires Mike to mow his lawn and pays him $9 an hour. Mike does not report that income to the IRS.

e. Gambling was illegal in Iowa but in 2010, Iowa made gambling legal.

f. In 2010, Ashley sells a car, that she had bought new in 2005, to William for $5,500.

Explanation / Answer

Can answer only four parts according to chegg policy. Please send other parts as separate question

A will increase. Now services have monetary value

B will fall because 750+750=1500>1400

C will decrease since services rendered by themselves instead of hotel will not be included in gdp

D remain unchanged as it is not reported

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