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Answer on Macroeconomics Question for John

Question #2298
Indicate how each of the following activities will affect GDP:<br>
a. You pay $600 per month to lease an apartment while attending school.<br>
b. You pay $8,000 to purchase a four-year-old car.<br>
c. You have car trouble and have to pay a repair shop $1,500 to fix the transmission of your car.<br>
d. You pay $5,100 to purchase 100 shares of Microsoft stock ($50 per share for the stock plus a $100 brokerage fee).<br>
e. You sell your 100 shares of Microsoft stock (purchased for $5,000) for $6,000 minus a $100 brokerage fee.
Expert's answer
a. You pay $600 per month to lease an apartment while attending school. - increase
b. You pay $8,000 to purchase a four-year-old car. - decrease
c. You have car trouble and have to pay a repair shop $1,500 to fix the transmission of your car. - increase
d. You pay $5,100 to purchase 100 shares of Microsoft stock ($50 per share for the stock plus a $100 brokerage fee). - no affect
e. You sell your 100 shares of Microsoft stock (purchased for $5,000) for $6,000 minus a $100 brokerage fee. - increase

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