please help with 3 abcd c The government spends 100 million

please help with #3 abcd

(c) The government spends $100 million to build a dam (d) Foreign graduate students work as teaching assistants at the local uni versity and earn $5,000 each 3. What counts as GDP (I)? By how much does GDP rise in each of the fol- lowing scenarios? Explain (a) A computer company buys parts from a local distributor for $1 million, (b) A real estate agent sells a house for $200,000 that the previous owners (c) During a recession, the government raises unemployment benefits by (d) A new U.S. airline purchases and imports $50 million worth of airplanes assembles the parts, and sells the resulting computers for $2 million had bought 10 years earlier for $100,000. The agent earns a commission of $6,000 $100 million from the European company Airbus

Solution

3a) GdP will incease by $1million from value addition method. Value addition=Value of output-Value of input.

B) GdP will increase by 106000 because 100000 is added due to capital gain and 6000 will be added because of brokerage/commision which is in return of services provide by the dealer.

C) No increase in GdP because GdP increases only the factor income but unemployment benefits is the transfer income.

D)It will also be not a part of GDP because import is the expenditure on goods which are produced in foreign country whereas Gdp should include the expenditure on goods and services produced in domestic country.