Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN: 9781305971509
Author: N. Gregory Mankiw
Publisher: Cengage Learning
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Question
Chapter 12, Problem 5CQQ
To determine
The effect of foreign investment.
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When the Japanese car maker Toyota expands one of its car factories in the United States, What is the likely impact of this event on the gross domestic product and gross national product of the United States?
a.GDP rises and GNP falls.
b.GNP rises and GDP falls.
c. GDP shows a larger increase than GNP
d. GNP shows a larger increase than GDP
Jane spends $1,200 on a used computer. How will this calculation effect GDP?
A.) Consumption will rise and GDP will rise
B.) Investment will rise and GDP will rise
C.) Since the good was not currently produced consumption will not rise, neither will GDP
D.) The GDP deflator will rise but not real GDP
The University of Chicago, a privately-owned school, is currently building a new hospital. This will be classified in U.S. GDP as ________, because ____________.
Group of answer choices
A.consumption; it will provide medical services to consumers
B.net exports; most construction workers are foreigners
C.government purchases; the construction constitutes government expenditure
D.investment; it increases the capital stock
Chapter 12 Solutions
Principles of Macroeconomics (MindTap Course List)
Ch. 12.1 - Prob. 1QQCh. 12.2 - Prob. 2QQCh. 12.3 - Prob. 3QQCh. 12 - Prob. 1CQQCh. 12 - Prob. 2CQQCh. 12 - Prob. 3CQQCh. 12 - Prob. 4CQQCh. 12 - Prob. 5CQQCh. 12 - Prob. 6CQQCh. 12 - Prob. 1QR
Ch. 12 - List and describe four determinants of...Ch. 12 - Prob. 3QRCh. 12 - Prob. 4QRCh. 12 - Prob. 5QRCh. 12 - Prob. 6QRCh. 12 - Prob. 7QRCh. 12 - Prob. 8QRCh. 12 - Prob. 1PACh. 12 - Prob. 2PACh. 12 - Prob. 3PACh. 12 - Prob. 4PACh. 12 - Prob. 5PACh. 12 - Prob. 6PACh. 12 - Prob. 7PACh. 12 - Prob. 8PACh. 12 - Prob. 9PA
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