3. State whether each item below would be included or excluded from the measure of GDP and explain why. (12 points - 3 points for each part. 2 points for the answer and 1 point for the explanation)
a. Income received, a non-cash payment, by a landscaping company for mowing someone else's lawn.
b. A person who mows his/her own lawn.
c. The purchase of 100 shares of corporate stock.
d. A $4 billion increase in business inventories.
4. The real GDP in the third quarter of 2023 was found to be $500,000 and the number of hours worked was 5,000. In the third quarter of 2024, the real GDP increased to $720,000 while the number of hours worked increased to 6,000. Given these values,
a. Solve for labor productivity in the third quarter of 2023. (4 points)
b. Solve for labor productivity in the third quarter of 2024. (4 points)
c. Solve for the growth rate of labor productivity between the third quarter of 2023 and the third quarter of 2024. (4 points)