Which of the following transactions are included in the gross domestic product, and by how much does each raise GDP?
a. You buy a new Toyota, made in the United States, paying $25,000.
b. You buy a new Toyota, imported from Japan, paying $25,000.
c. You buy a used Cadillac, paying $12,000.
d. Google spends $500 million to increase its Internet capacity.
e. Your grandmother receives a Social Security check for $1,500.
f. Chrysler manufactures 1,000 automobiles at a cost of $15,000 each. Unable to sell them, the company holds the cars as inventories.
g. Mr. Black and Mr. Blue, each out for a Sunday drive, have a collision in which their cars are destroyed. Black and Blue each hire a lawyer to sue the other, paying the lawyers $5,000 each for services rendered. The judge throws the case out of court.
h. You sell a used computer to your friend for $100.