Friday, October 28, 2016

2007 Macroeconomics FRQ#3

2007 Macroeconomics FRQ#3


Watch me answer it here

(A) The value of a used textbook sold through an online auction in 2006.


Check out GDP cheat sheet, Here

Used means second hand and implies that the value of this textbook was already counted in a previous year, therefore it is not counted this year.


(B) Rent paid in 2006 by residents in an apartment building built in 2000.

Rent is payment (income earned) for the service of using someones property therefore it is counted in GDP for 2006.


(C) Commissions earned in 2006 by a stockbroker. 


Commissions paid on sale (a service) of stock or bonds,,, above.


(D) The value of an automobile produced in 2006 entirely in South Korea by a firm fully owned by US citizens.

from the cheat sheet - 
((Total Value of all Final goods and services produced in the US in a year))

Excludes - production outside the US even by Americans,




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