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Total Change in GDP

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.

Solution Preview

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 ...

Solution Summary

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

$2.19