Answer to Question #108627 in Macroeconomics for Davyani Yadav

Question

In each of the following cases, determine how much GDP and each of its components is affected (if at all):
Michael spends $700 on Christmas dinner for his employees to celebrate company's financial success in 2019.
In January 2020, Michael & Associates bought new computers for the office staff totaling $10,000. The computers were built in Germany.
The computers bought by Michael & Associates in January 2020 for the office staff were last year's (2019) model.
Ford Motors built cars worth $800 million in 2019, consumers only bought $500 million worth of cars.

Answer 1

1) increases by $700

2) decreases by $10,000

3) doesn't matter

4) increases by $800 million