Author Question: Suppose Regretta Sigh becomes the lucky winner of a 10,000,000 state lottery jackpot after ... (Read 80 times)

nenivikky · **on:** Jun 29, 2018

Suppose Regretta Sigh becomes the lucky winner of a 10,000,000 state lottery jackpot after purchasing a single 1.00 lottery ticket. How does her lucky expenditure affect current GDP?

A) GDP rises by 1.00.
B) GDP rises by 9,999,999.
C) GDP rises by 10,000,000.
D) GDP rises by 10,000,001.
E) GDP rises by the present value of the total cash prize.

Question 2

Suppose a pickpocket steals your 20 bill and spends all of it on pizza and beer. What happens to GDP?

A) GDP increases by twenty dollars.
B) GDP decreases by twenty dollars.
C) Because the positive balances out the negative, GDP remains unchanged.
D) GDP decreases because somebody has clearly been made worse off.