For each of the following transactions, determine the contribution to the curren
ID: 1239832 • Letter: F
Question
For each of the following transactions, determine the contribution to the current year's GDP. Explain the effects on the product and expenditure accounts. You are informed that you have won $300,000 in public lottery, to be paid to you, in total, immediately. The National TV pays you an additional $5,000 to appear in a TV commercial publicizing the lottery. A Japanese company builds an auto plant in US for $1,000,000. A homemaker enters the work force, taking a job that will pay $40,000 over the year. The homemaker must pay $16,000 over the year for professional child care services.Explanation / Answer
a) nothing . It is just a transfer of wealth b) $5000 to the GDP . you have created value by advertising c.nothing. it is added in to the japannese GDP not America GDP d. 56,000
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