Economic Exam make sure to explain well your answers. Q2 Which of the components
ID: 1208506 • Letter: E
Question
Economic Exam
make sure to explain well your answers.
Q2
Which of the components of GDP are effected when Lauren buys a computer made in Taiwan for her small business? Explain. Which of the components of GDP are affected when a new police officer is being hired? Explain. Which of the following is going to have greater effect on the inflation rate, 10% increase in college tuition or 10% increase in the housing cost? Explain. Bernie lost his job 2 month ago. He is looking for an engineering job and meanwhile supports his family by working for a cab company 5 hours a week. Is Bernie considered to be employed, unemployed, or not in the labor force? Explain. Give an example of a situation in which a person would be considered frictionally unemployed.Explanation / Answer
The major components ofGDP are the following.
a. Personal consumption expenditure
b. Government expenditure
c. Net exports
d. Investment
a. When lauren buys a computer made in taiwan, his personal consumption expenditure increases and aslo net exports decrease as it is imported.
b. When a police office is hired, government expenditure increases increases because of the salary that has to be paid to the officer.
c. A 10% increase in housing cost will have more effect because it effects a larger number of people.
d. Part time workers are condired employed. So the person is employed.
e. A person who is not satisfied with his job and he leaves his job and searches for another job will considered to be frictionally unemployed.