00:01
In this question, you asked how would the following affect gdp, gross domestic product, and you've given three different scenarios.
00:08
The first being government transfer payments increase.
00:13
Government transfer payments are things like social security, welfare, unemployment benefits, etc.
00:26
When government transfer benefits increase, it directly affects the income of individuals and households.
00:34
So we would have increased income, which would lead to increased consumption, and increased then economic activity.
00:46
This would lead to an overall increase in gdp because people are likely going to be spending more.
00:58
Let's look at your second scenario.
00:59
A student sells a used cd to a record store...