Question

which of the following will be included in the current years calculation of gdp?
$50 cash earned but not reported by your neighbor for babysitting
income earned as a lifeguard at a summer camp
the purchase of a used car from a friend
the purchase of a vintage surfboard from thrift store
the purchase of one company by another company

nicole was laid off as a waitress when her restaurant closed down due to the slow economy. nicole is considered
frictionally unemployed
seasonally unemployed
structurally unemployed
cyclically unemployed
not in the labor force

Explanation:

For the first question:

1. Unreported babysitting income is part of the underground economy and not counted in GDP.
2. Income from a lifeguard job is payment for a newly provided service, which is included in GDP.
3. Purchases of used goods (like the used car or vintage surfboard) do not count, as they were already included in GDP in the year they were produced.
4. The purchase of one company by another is a transfer of assets, not a new good or service, so it is not counted in GDP.

For the second question:

1. Frictional unemployment is temporary unemployment from job transitions, which does not apply here.
2. Seasonal unemployment is tied to seasonal work cycles, which does not apply here.
3. Structural unemployment comes from mismatched skills/industry changes, which does not apply here.
4. Cyclical unemployment is caused by downturns in the overall economy, which matches Nicole's situation of being laid off due to a slow economy.
5. Nicole is still part of the labor force as she was employed and laid off, so she is not out of the labor force.

Answer:

1. Income earned as a lifeguard at a summer camp
2. Cyclically unemployed