Macroeconomics: Principles, Problems, & Policies 20th Edition

Published by McGraw-Hill Education
ISBN 10: 0-07766-077-3
ISBN 13: 978-0-07766-077-2

Chapter 7 - Measuring Domestic Output and National Income - Discussion Questions - Page 169: 12

Answer

a) Included. b) Excluded. c) Excluded. d) Included. e) Excluded. f) Excluded. g) Included. h) Excluded. i) included. j) Excluded.

Work Step by Step

a) because the interest is paid to the bondholder for their service. b) because that is the transfer of payments from taxpayers for which no service is rendered. c) because there is no transaction happening. d) Payment for a service. e) This is considered transfer of funds between one to another. f) Because this is a transfer of goods from one person to another. g) Because it is the production of final goods for consumption. h) The effect of the decline will be counted, but the change in the workweek itself is not the production of a final good or service or a payment for work done. i) Because it is an increase in inventory thus an increase in stock capital. j) There is no production of new goods and only the transfer of funds.
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