Instructions: This assignment presents scenarios in which you will examine the impacts of net exports on the U.S. economy by evaluating the components of the GDP. It requires a combination of short paragraph answers, computations, and completion of a 450- to 500-word essay. You are required to follow proper APA format. Read the Criteria section below for more information before you begin this assignment. Questions In the discussion, you examined foreign GDP. Give a brief explanation describing how the discussion helped you research and explore domestic GDP for this assignment.
Why does inflation make nominal GDP a poor measure of the increase in total production?
Which component of GDP will be affected by each of the following transactions involving “American Cars R Us Rental”?
Briefly explain. Hint on the components of the GDP: GDP = C + I + G + Nx You use American Cars R Us Rental on your next vacation. American Cars R Us Rental purchases auto parts from foreign companies. American Cars R Us Rental spends $50,000,000 to update their inventory, marketing, and technology. American Cars R Us Rental purchases 5,000 American automobiles from their competitors. The federal government decides to subsidize any “fuel-efficient” experiments with the cars that American Cars R Us Rental decides to purchase. Criteria This assignment should be completed in Microsoft Word. The assignment should include a highly developed purpose and viewpoint. It should also be written in Standard English and demonstrate exceptional content, organization, style, and grammar and mechanics.
There should be no evidence of plagiarism. Respond to the questions in a thorough manner, providing specific examples where asked. Add references in APA format in a separate page at the end of your paper. Your sources and content should follow proper APA format.
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