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Ratling [72]
3 years ago
11

By how much does the current GDP rise in the following scenario? A real estate agent sells a house for $250,000 that the previou

s owners had purchased 10 years earlier for $90,000. The real estate agent earns a commission of $10,000.
a. $160,000.
b. $250,000.
c. $10,000.
d. $90,000.
e. $260,000.
Business
1 answer:
Aloiza [94]3 years ago
8 0

Answer:

c. $10,000.

Explanation:

Gross domestic product is the sum total of all goods produced in a country in a given period. Sale of used good are not considered in GDP because the original value of the used item would have been recorded previously as GDP when it was first produced.

Therefore in this scenario the money paid for the house ($250,000) is not considered to be part of GDP since the original value of $90,000 would have been recorded as GDP 10 years ago.

However the commission of $10,000 that the real estate agent collected for his services is considered a contribution to GDP.

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In the Keynesian-cross model, actual expenditures differ from planned expenditures by the amount of:
dmitriy555 [2]

Answer: Option (c) is correct.

Explanation:

Correct option: Unplanned inventory investment.

Unplanned inventory investment is a component of investment spending. The other component of investment spending is planned inventory investment.

Unplanned inventory investment occurs when actual sales are more or less than the company's expected sales which results in unplanned changes occurred in the inventories.

Hence, in the Keynesian-cross model, actual expenditures differ from planned expenditures by the amount of Unplanned inventory investment.

5 0
3 years ago
What would be the most challenging part of working in IT?
zhuklara [117]

Answer:

The kids in the movie were not acting they were actually scared.

Explanation:

7 0
2 years ago
Read 2 more answers
Calculate the monthly payment for a 5-year car loan of $23,570 at 10. 43% interest, compounded monthly. A. $247. 44 b. $337. 56
Phoenix [80]

The monthly payment for this car loan is equal to: D. $505. 79.

<u>Given the following data:</u>

  • Time = 5 years
  • Principal = $23,570
  • Interest rate = 10.43%

To calculate the monthly payment for this car loan:

Mathematically, the monthly payment on a loan is given by this formula:

M = \frac{P(\frac{r}{12})(1 \;+\; \frac{r}{12})^{12t}}{(1 \;+ \; \frac{r}{12})^{12t} -1}

<u>Where:</u>

  • P is the principal or amount borrowed.
  • r is the interest rate.
  • M is the monthly payment.
  • t is the number of years.

Substituting the given parameters into the formula, we have;

M = \frac{23570(\frac{0.1043}{12})(1 \;+\; \frac{0.1043}{12})^{12 \times 5}}{(1 \;+\; \frac{0.1043}{12})^{12 \times 5}\; -\;1}\\\\M = \frac{23570(0.008692)(1 \;+\; 0.008692)^{60}}{(1 \;+\; 0.008692)^{60}\; -\;1}\\\\M = \frac{23570(0.008692)(1.008692)^{60}}{(1.008692)^{60}\; -\;1}\\\\M = \frac{23570(0.008692)(1.6808)}{1.6808\; -\;1}\\\\M = \frac{344.34}{0.6808}

Monthly payment, M = $505.79

Read more: brainly.com/question/16992474

4 0
2 years ago
The future value of​ $100 received today and deposited in an account for four years paying semiannual interest of 6 percent is​
jonny [76]
Formula: FV = PV(1+ r)^n

Fv is the future value, Pv is the present value, r is the interest rate, n is the number of periods.

FV = $100(1 + 0.06)^(6*2) = $201.22


4 0
3 years ago
​greg, a​ landscaper, is planning on opening his own landscaping company. he currently earns​ $40,000 per year working for his u
Oxana [17]

Answer:

The total economic cost is $40,500 per year

Explanation:

The total economic cost per year is equal to the sum of:

* The opportunity cost relating to sacrificing the current work Greg is working on which is equal to his yearly salary of : $40,00.

* The opportunity cost relating to sacrificing the interest income earned on $10,000 saving, which he is now used for purchasing equipment, which is calculated as: 10,000 * current rate of savings = 10,000* 5% = $500 ( total cost of equipment is not included because e could sell the equipment for what he​ paid later on).

=> So, total economic cost per year is $40,000 + $500 = $40,500.

5 0
3 years ago
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