Ask Question
BusinessBusiness
3 October, 12:26

State whether the following actions will increase or decrease GDP: a. An individual sells her house on her own. b. An individual sells his house through a broker. c. Government increases Social Security payments. d. Stock prices rise by 20 percent.

+4
Answers (1)
  1. 3 October, 13:03
    0
    a. An individual sells her house on her own.

    GDP is not affected.

    b. An individual sells his house through a broker.

    GDP is not affected.

    c. Government increases Social Security payments.

    GDP is not affected.

    d. Stock prices rise by 20 percent.

    GDP will increase.

    Explanation:

    Selling a house by an individual does not affect the Gross Domestic Product of a Country.

    Selling a house by a broker will also not affect the Gross Domestic Product of a Country.

    When a Government increases the social security payments, this result in transfer of money from government to social security account but it does not generate any goods are services in the country.

    When the stock prices increases in the country, there is more likely that the individuals will invest in the stocks. So investments will increase and thus GDP will rise.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “State whether the following actions will increase or decrease GDP: a. An individual sells her house on her own. b. An individual sells his ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
There isn't a definitive relationship - more inventory could mean a lower or a higher in-stock probability What is the relationship between the average inventory and the in-stock probability? a.
Answers (1)
The real risk-free rate is 3.25%, and inflation is expected to be 2.25% for the next 2 years. A 2-year Treasury security yields 9.00%. What is the maturity risk premium for the 2-year security? Round your answer to two decimal places.
Answers (1)
Kahlan Opinion Surveys had beginning retained earnings of $24,600. During the year, the company reported sales of $105,700, costs of $78,300, depreciation of $9,000, dividends of $1,200, and interest paid of $635. The tax rate is 30 percent.
Answers (1)
A natural monopoly occurs when: A. economies of scale are large enough so that one firm can supply the entire market at a lower average total cost than can two or more firms. B.
Answers (1)
Why do companies using a horizontal structure have cultures that emphasize openness, employee empowerment, and responsibility? What do you think a manager's job would be like in a horizontally organized company?
Answers (1)
New Questions in Business
The major benefit of diversification is the: a. increased expected return. b. removal of all negative risk assets from the portfolio. c. reduction in the portfolio's total risk. d. reduction in the portfolio's systematic risk.
Answers (1)
Dougherty Corporation purchased a new delivery van for use in its dry-cleaning business. As part of the purchase of the van the following costs were incurred: Acquisition cost 30,000, Sales tax 1,800, Title transfer 250, paid to the company logo on
Answers (1)
Horatio Alger is the product manager for Brand X, a consumer product with a retail price of $1.20. Retail margins are 35% while wholesalers take an 11.5% margin.
Answers (1)
Explain what is meant by market research.
Answers (1)
Jean, a restaurant critic, publishes a review in a national daily that the sandwiches served at his friend's deli are usually not fresh. Tom, the owner of the deli, notices a significant decrease in customers after the review gets published.
Answers (1)
Home » Business » State whether the following actions will increase or decrease GDP: a. An individual sells her house on her own. b. An individual sells his house through a broker. c. Government increases Social Security payments. d. Stock prices rise by 20 percent.
Sign Up Forgot Password?