1. Health-Care Subsidies. When the federal government provides subsidies for individuals to buy health care, is this included in the federal budget? Is it included in GDP? 2. Buying a Foreign Car....

1. Health-Care Subsidies. When the federal government provides subsidies for individuals to buy health care, is this included in the federal budget? Is it included in GDP?

2. Buying a Foreign Car. Explain why buying a foreign car made abroad for $50,000 increases consumption by $50,000 but does not increase GDP.