Hello members.... i need some help related to my macro economics assignment...hope u ppl will help me out... 1. Suppose police become more efficient and we hire fewer police officers. What will happen to GDP ? 2. Assume a product improves in quality from one year to the next year and its price rises to reflect this improvement. What happens to the GDP deflator and Real GDP ? 3. Do increases in unwanted inventories on firm's shelves count as inventory investment in GDP account ? 4. Is buying an air-condition (A/C) an act of consumption or investment in the GDP accounts ? What about purchase of a house ? 5. What happens to GDP accounts if an American firm decides to build a plant in England rather than the U.S. ? 6. How would an increase in a sales tax affect GDP ? 7. If your friend urges you to purchase stock options, is he encouraging you to invest in the sense in which we use the term in the GDP account ? 8. Is domestic investment the same as investment done in any other country ? 9. What is difference in the national income accounts between A firm's purchasing a car for an executive and the firm's paying the executive additional income to purchase a car ? You're hiring your spouse ( who takes care of the house ) rather than just having her do the work without pay ?