For each of the following scenarios determine whether or not it should be included in the U.S. GDP calculation. How much would each situation increase GDP by (you should be able to give me an exact number)? If a transaction does not count towards GDP give me an explanation on the definition requirement it does not satisfy and why. Unless otherwise stated, assume that all transactions are completed domestically, within a one year time period.
a. Dave pays a State Certified Building Contractor $15,000 to build a garage.
b. Dave purchases $5,000 worth of materials from Menard's and builds a garage that increases the value of his home by $15,000.
c. Dave builds a garage (valued at $15,000) out of lumber that he cut, dried and machined himself.
d. An RCC student purchases a refurbished iPad from somebody advertising on the college bulletin board.
e. $13 million dollars in cotton, grown in Arkansas that ultimately will be used in a T-shirt, is sold to a woving factory for processing.
f. You borrow $5,000 to cover miscellaneous school-related expenses.
g. You win $450 while gambling in Las Vegas.
h. The Detroit Tigers purchase an additional $4.7 million worth of Labatt Blue (manufactured and bottled in Toronto) to sell during this year's Spring Training.
i. Somebody in Canada buys a new BMW (manufactured in South Carolina) for $55,000.
j. The state of Illinois spends $89 million to construct a new highway between St. Louis and Chicago.