Author Question: This month Jones bought 10 of fresh hops for making home-brewed lager. In principle, what happens to ... (Read 73 times)

olgavictoria · **on:** Jun 29, 2018

This month Jones bought 10 of fresh hops for making home-brewed lager. In principle, what happens to GDP?

A) Nothing, because it involves the production of homemade beer.
B) Nothing, because the hops are an intermediate good.
C) GDP increases by 10.
D) GDP increases by 10 as long as Jones is satisfied with the final product.

Question 2

Other things constant, if the population decreases and GDP remains unchanged,

A) real GDP necessarily decreases.
B) per capita GDP necessarily increases.
C) per capita GDP necessarily decreases.
D) real GDP necessarily increases.