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Shalnov [3]
3 years ago
14

State whether the following actions will increase or decrease GDP: a. An individual sells her house on her own. b. An individual

sells his house through a broker. c. Government increases Social Security payments. d. Stock prices rise by 20 percent.
Business
1 answer:
statuscvo [17]3 years ago
5 0

Answer:

a. An individual sells her house on her own.  

         GDP is not affected.

b. An individual sells his house through a broker.

         GDP is not affected.  

c. Government increases Social Security payments.  

          GDP is not affected.

d. Stock prices rise by 20 percent.

   GDP will increase.

Explanation:

Selling a house by an individual does not affect the Gross Domestic Product of a Country.  

Selling a house by a broker will also not affect the Gross Domestic Product of a Country.

When a Government increases the social security payments, this result in transfer of money from government to social security account but it does not generate any goods are services in the country.

When the stock prices increases in the country, there is more likely that the individuals will invest in the stocks. So investments will increase and thus GDP will rise.  

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timurjin [86]

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<u>What is Protectionism?</u>

Protectionism refers to government policies that help to boost domestic industries while restricting international trade. The objective of protectionist policies is usually to improve the economic conditions within a domestic economy. The protectionist policies can also be implemented for improving the quality of products or safety concerns. There are different protectionist policies and tools that a government can use to implement and improve economic activity such as tariffs, product standards, import quotas, and subsidies.

Therefore, tax breaks, guaranteed high prices, and loans are examples of subsidies protectionism.

You can learn more about Protectionism at brainly.com/question/28161107

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