Each summer, many of the campsites at America's favorite national parks sell out months in advance due to their limited supply, low prices, and prime locations and vies. This has led entrepreneurial individuals to reserve these campsites well in advance and then sell the reservations for a high premium price. Does the money earned by these campsite scalpers appear in GDP? Why or Why not? Supppose the government cracks down on this practice by doubling the price of campsites. Would this affect GDP? Explain.

Each summer, many of the campsites at America's favorite national parks sell out months in advance due to their limited supply, low prices, and prime locations and vies. This has led entrepreneurial individuals to reserve these campsites well in advance and then sell the reservations for a high premium price. Does the money earned by these campsite scalpers appear in GDP? Why or Why not? Supppose the government cracks down on this practice by doubling the price of campsites. Would this affect GDP? Explain.

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter7: Production And Growth

Section: Chapter Questions

Problem 5CQQ

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