Need help with bussineess hwk

[LOLMAN02]

I have a homework question on bussiness which im stuck on, the question is as follows:
Explain economically and with your own words how an increase in consumption by $100 may
increase the GDP by more than $100
can anyone give me a helping hand?

 

[cleanshot911]

I have a homework question on bussiness which im stuck on, the question is as follows:
Explain economically and with your own words how an increase in consumption by $100 may
increase the GDP by more than $100
can anyone give me a helping hand?

Well I don't see how Tomshardware.com is the place to ask this question. Like at all. But the answer is because of spending multipliers. Google them just to make sure I remember the concept correctly, but when you spend $100, the person who you gave the $100 will save some of that money, then spend the rest of it on other things. The person that then receives that money then does the same until the money being spent is reduced to minuscule amounts. But every time that money is spent it adds ot the country's GDP. So if someone buys a fridge for $100, and the fridge owner then pays someone else to assemble more fridges for $80, keeping the rest of the $20 for himself, $180 is added to the GDP because that's how much income was generated from the consumption of the goods bought with that money.

 

[USAFRet]

I have a homework question on bussiness which im stuck on, the question is as follows:
Explain economically and with your own words how an increase in consumption by $100 may
increase the GDP by more than $100
can anyone give me a helping hand?

Tell us what YOU think it is, then we can pick that apart and assist.

 

[LOLMAN02]

I have a homework question on bussiness which im stuck on, the question is as follows:
Explain economically and with your own words how an increase in consumption by $100 may
increase the GDP by more than $100
can anyone give me a helping hand?

Well I don't see how Tomshardware.com is the place to ask this question. Like at all. But the answer is because of spending multipliers. Google them just to make sure I remember the concept correctly, but when you spend $100, the person who you gave the $100 will save some of that money, then spend the rest of it on other things. The person that then receives that money then does the same until the money being spent is reduced to minuscule amounts. But every time that money is spent it adds ot the country's GDP. So if someone buys a fridge for $100, and the fridge owner then pays someone else to assemble more fridges for $80, keeping the rest of the $20 for himself, $180 is added to the GDP because that's how much income was generated from the consumption of the goods bought with that money.

well tech heads are more knwoldegable then other forums, even business forums i found to be deserted :/
plus i did post it in the knowledge section , but thanks for the anwser, i understand now..

 

[cleanshot911]

I have a homework question on bussiness which im stuck on, the question is as follows:
Explain economically and with your own words how an increase in consumption by $100 may
increase the GDP by more than $100
can anyone give me a helping hand?

Well I don't see how Tomshardware.com is the place to ask this question. Like at all. But the answer is because of spending multipliers. Google them just to make sure I remember the concept correctly, but when you spend $100, the person who you gave the $100 will save some of that money, then spend the rest of it on other things. The person that then receives that money then does the same until the money being spent is reduced to minuscule amounts. But every time that money is spent it adds ot the country's GDP. So if someone buys a fridge for $100, and the fridge owner then pays someone else to assemble more fridges for $80, keeping the rest of the $20 for himself, $180 is added to the GDP because that's how much income was generated from the consumption of the goods bought with that money.

well tech heads are more knwoldegable then other forums, even business forums i found to be deserted :/
plus i did post it in the knowledge section , but thanks for the anwser, i understand now..

No problem I suppose.