Q1.

what components of GDP (if any) would each of the following transactions
affect?

Explain.

a. A family buys a new refrigerator.

The consumption is increase. The transaction influences the consumption
component of GDP in the light of the fact that the household is spending money on a
good and they purchase a new refrigerator to fulfil their personal needs.

Q5. Consider the following data on Malaysia’s GDP:

c. What was real GDP in 2005 measured in 1987 prices?

GDP deflator, 2005= real GDP of 2005 × 100

189 =

Real GDP2005(in 1987 ringgit) =

= RM 262,031.22
Q8. Would each of the following groups be happy or unhappy if ringgit
appreciated? Explain.

c) Australian tourists planning a trip to Malaysia.

When Australian visitors are considering a trip to Malaysia, they would be unhappy.
It’s because they’re going to get even less ringgit in terms of their money. This will
affect the total cost of the tourists and make their holidays expensive.

d) A Malaysian firm trying to purchase property overseas.

An American company looking to buy property in another country would be happy if
the US dollar rose in value because it would receive more units of the foreign
currency and thus be able to purchase more property.