A farmer sells cotton to a clothing company for 1000 and


A farmer sells cotton to a clothing company for $1,000 and the clothing company turns the cotton into T-shirts that it sells to a store for a total of $2,000. How much did GDP increase a result of these transactions? Category Amount:: Durable Goods $1,000, Non-Durable Goods 2,500, Services 7,000,Fixed Investment 1,800, Changes to Business Inventory 35, Investment in Stocks & Bonds 5,500, Federal Government Purchases 1,200, State/Local Government Purchases 1,800 ,Transfer Payments 575 ,Exports from the United States 2,000, Imports into the United States 2,600 2.Using the above table determine the amount added to GDP by calculating the amount added to each of GDP’s categories (Consumption, Investment, Government Expenditures, and Net Exports). 3. Indicate whether each of the following is counted in this year’s GDP: a. You bought a new Wiki at GameStop last year and resold it on eBay this year. b. You purchase an “Investing for Dummies” book at Barnes and Noble. c. You purchase a historic home using the services of a real estate agent. d. You detail your car so it is spotless inside and out. e. You purchase a new hard drive for your old laptop. f. Your physical therapist receives $300 for physical therapy but reports only $100.

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Business Economics: A farmer sells cotton to a clothing company for 1000 and
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