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Would not increase GDP

Updated: 12/3/2022
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What happens to GDP If the illegal drug trade was legalized?

If the illegal drug trade was legalized, GDP could potentially increase as the production and sale of drugs would be included in official economic activities. Legalization could also lead to taxation of the industry, creating a new revenue stream for the government. Additionally, there could be savings in law enforcement and judicial costs associated with prosecuting illegal drug activities.


Which of the following would not increase a GDP?

More import. APEX


What would result in increase in GDP?

Greater levels of investment


What is positive gdp?

A actual increase in GDP.


What would be the effect on the demand for narrow money if an increase in real GDP?

what's the answer?


What would happen if nominal GDP doubles over night what statistic would you need to check before you began to celebrate?

Check the inflation rate, and the real GDP. If inflation also is very high, nominal GDP could increase despite there not being any increase in output.


Why doesn't an increase in aggregate demand translate directly into an increase in real GDP?

Why doesn't an increase in aggregate demand translate directly into an increase in real GDP


Is Rent received on a two-bedroom apartment considered to be GDP?

Any increase or decrease inÊa persons income is included on the GDP. The rent on a two-bedroom apartment is an increase in income and would be included.


If government spending increases 5B and your MPC is a 90 how much does GDP increase?

From such an action (increase in government spending by 5 billion and a Marginal Propensity to Consume of 90%), the GDP would increase (in the scope of simplicity) by 4.5 billion. This is because government expenditures is counted in GDP, and in this case 90% of it is consumed by the populace, so 5B * .9 = 45B. But, being that the GDP is Consumption + Gross Investment + Govt. Spending +(-) Imports/exports, one could suggest that the GDP would increase by just 5B because that which is not consumed is saved (and thus invested).


How much does the GDP increase if an economy has a crowding out effect of 50 percent?

The GDP would likely not increase because 'crowding-out' implies that the public sector is reducing private sector investment. Since usually there are additional costs to government spending because of collection and distribution, I would expect crowding out must be less efficient than private investment could be and, therefore, GDP would not increase due to crowding out but would likely fall.


Which of the following would result in an increase in GDP apex?

Greater levels of iinvestment


How much does the GDP increase now if an economy has a crowding out effect of 50 percent?

The GDP would likely not increase because 'crowding-out' implies that the public sector is reducing private sector investment. Since usually there are additional costs to government spending because of collection and distribution, I would expect crowding out must be less efficient than private investment could be and, therefore, GDP would not increase due to crowding out but would likely fall.