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Total Change in GDP

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I need some help with the following problem:
Calculate the totals change in a year's GDP for each of the following scenarios:
Remember old output is not calculated int he GDP only new output.
a. You win $25,000 in your state's lottery. Ever the entrepreneur, you decide to open a Ping Pong ball washing service, buying $15,000 worth of equipment from SpiffyBall Ltd. of Hong Kong and $10,000 from Ball-B-Kleen of Toledo, Ohio.
b. On March 31, you decide to stop throwing away $50 a month on convenience store nachos. You buy $200 worth of equipment, corn meal, and cheese and make your own nachos for the rest of the year.

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Solution Summary

This solution defines Gross Domestic Product (GDP) and provides and equation to determine if the case studies purchases are included.

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a) You win $25,000 in your state's lottery. Ever the entrepreneur, you decide to open a Ping Pong ball washing service, buying $15,000 worth of equipment from Spiffy Ball Ltd. Of Hong Kong and $10,000 from Ball-B-Kleen of Toledo, Ohio.

Gross Domestic Product (GDP) is the market value of all final goods and services ...

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