Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Microeconomics Expert

A busy attorney regularly works out with the help of a trainer at the local gym. She pays $400 per month directly to the trainer for this service. Over time, the two fell in love and got married. They still work out together (just like before) and she still gives him $400 per month but they both consider the money to be "spending money". Assuming that this is the only thing that changed, what happens to the GDP? Explain and support your answer. (hint: this money is no longer in market activity)

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M91233287

Have any Question?


Related Questions in Microeconomics

Question you are paying a series of five constant-dollar or

Question: You are paying a series of five constant-dollar (or real-dollar) uniform payments of $1830.5 beginning at the end of first year. Assume that the general inflation rate is 30.37% and the market interest rate is ...

Question the capital asset pricing model postulates a

Question: The Capital Asset Pricing Model postulates a relationship between the returns to a particular stock and the return on the market. Go to the Internet and obtain monthly stock price data for Microsoft, GE, IBM, P ...

Question consider how the following situations would affect

Question: Consider how the following situations would affect the economy's monetary system. a. Suppose that the people on Yap discovered an easy way to make limestone wheels. How would this development affect the usefuln ...

Question suppose the us government decides to reduce

Question: Suppose the U.S. government decides to reduce military spending. Using the Simple Keynesian model, describe graphically the impact of this event on equilibrium real GDP. If equilibrium real GDP was equal to its ...

Question you have been asked to calculate the current

Question: You have been asked to calculate the current balance on a loan that involves 5 equal mortgage payments of $200,000 per year (principal and interest), but the interest rate changed on the loan is variable. in ye ...

Question which entities in the federal reserve system

Question: Which entities in the Federal Reserve System control the discount rate? Reserve requirements? Open market operation? In what ways can the regional Federal Reserve Banks influence the conduct of monetary policy? ...

Question drug law enforcers can concentrate their efforts

Question: Drug law enforcers can concentrate their efforts on reducing supply or demand, removing suppliers or removing demanders. a. Assuming that your goal is to raise the price of drugs to a prohibitive level, should ...

Question a manufacturer of laptop computers operates a

Question: A manufacturer of laptop computers operates a plant with an annual capacity of 6,630,000 laptop units. One of his models is expected to sell 390,000 units in the coming year. How large should each product lot b ...

Question a deposit of 1000 is planned for the end of each

Question: A deposit of 1000 is planned for the end of each year into an account paying 6% per compounded annually. The deposits were not made in years 8 and 9 but were made each year until year 30 for all other years. Wh ...

Question optimal input level smokeys garage inc provides

Question: Optimal Input Level. Smokey's Garage, Inc., provides routine auto diagnostics for customers in the Atlanta, Georgia, metropolitan area. Tests are supervised by skilled mechanics using equipment produced by two ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As