ii) Suppose the following four actions occur in the USA in 2019. How muchwould these combined actions add to US GDP in 2019? Give a brief expla-nation justifying your answer.a. A Japanese carpenter, living and working in the USA, purchases $3,000worth of materials used directly in the production of a garage, which is thensold to Smith, a Canadian living in the USA, for $17,000.b. Isabella goes to land she owns, cuts down a tree, and uses the wood tobuild a garage for personal use that is worth $15,000.c. You purchase a used computer from a friend for $400.d. Joe spends $1000 on a stereo, and $20 on a haircut.e. Ford (US company) builds cars and the total is valued at $20,000, in afactory in China.

Let's break down the contributions to the US GDP based on the given scenarios: (a) .Japanese…

Answered: ii) Suppose the following four actions…

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter7: Macroeconomic Measurements, Part Ii: Gdp And Real Gdp

Section: Chapter Questions

Problem 9WNG

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