Question

Match the scenarios given to the government expenditure. Then state the government program, whether or not the expenditure is included in GDP and how it affects GDP. Scenario Government Program Counted in GDP (Yes or No) Effect on GDP (Increase, Decrease or No Change) Metro Council approves a new police contract, which includes a 2% raise for police officers. Due to the COVID-19 pandemic the government closes down National Parks for two months. A woman with three children is out of work and her children need vaccinations. Both adults in a family of four lost their jobs and file for aid. The local government installs a new splash park outside the local recreation center. A man cashes his retirement check. State tax revenue is down due to the current economic recession. The state has to reduce subsidies to local school districts. Due to widespread unemployment, the federal government provides additional funding for unemployment checks.

          Match the scenarios given to the government expenditure. Then state the government program, whether or not the expenditure is included in GDP and how it affects GDP.
Scenario
Government Program
Counted in GDP (Yes or No)
Effect on GDP (Increase, Decrease or No Change)
Metro Council approves a new police contract, which includes a 2% raise for police officers.
Due to the COVID-19 pandemic the government closes down National Parks for two months.
A woman with three children is out of work and her children need vaccinations.
Both adults in a family of four lost their jobs and file for aid.
The local government installs a new splash park outside the local recreation center.
A man cashes his retirement check.
State tax revenue is down due to the current economic recession. The state has to reduce subsidies to local school districts.
Due to widespread unemployment, the federal government provides additional funding for unemployment checks.

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Added by Elizabeth C.

Principles of Economics

Gregory Mankiw 8th Edition

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Solved by Expert Jennifer Stoner

01/18/2023

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The government program is a new police contract which includes a 2% raise for Show more…

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Match the scenarios given to the government expenditure. Then state the government program, whether or not the expenditure is included in GDP and how it affects GDP. Scenario Government Program Counted in GDP (Yes or No) Effect on GDP (Increase, Decrease or No Change) Metro Council approves a new police contract, which includes a 2% raise for police officers. Due to the COVID-19 pandemic the government closes down National Parks for two months. A woman with three children is out of work and her children need vaccinations. Both adults in a family of four lost their jobs and file for aid. The local government installs a new splash park outside the local recreation center. A man cashes his retirement check. State tax revenue is down due to the current economic recession. The state has to reduce subsidies to local school districts. Due to widespread unemployment, the federal government provides additional funding for unemployment checks.

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Transcript

00:01 Here we're going to match the scenarios given to the government expenditure.

00:04 We're then going to state the government program whether or not the expenditure is included in gdp and how it affects gdp.

00:12 Scenario a is the metro council approves a new police contract, which includes a 2 % raise for police officers.

00:23 So the government program is law enforcement because we're talking about the police officers.

00:30 Is this counted in gdp? yes.

00:33 It is counted in gdp because it's income.

00:42 It's a government expenditure, so it's a government program, and therefore gdp increases because the government is spending more money.

00:51 Scenario b, due to the covid -19 pandemic, the government closes down national parks for two months.

00:57 So the government program is national parks.

01:03 Is this counted in gdp? no, which means there's no change because they were closed.

01:15 So we're not going to count it because there's nothing to count.

01:21 Scenario c, a woman with three children is out of work and her children need vaccinations.

01:28 So this is health care services.

01:37 This is not part of gdp.

01:43 So no change in gdp.

01:52 Vaccinations for children will not be part of gdp because it's not necessarily a government expenditure.

02:01 It's health care.

02:02 Part d, both a different.

02:04 Adults and a family of four lost their jobs and filed for aid.

02:08 This is unemployment...

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