Question

3. Categories of expenditures Charles and Dina Bloom live in Swarthmore, PA. Dina's father, Gilberto, lives in Sweden. For each of the following transactions that occur in their lives, identify whether it is included in the calculation of U.S. GDP as part of consumption (C), investment (I), government purchases (G), exports (X), or imports (M). Check all that apply. Transaction C D G X M Dina's father in Sweden orders a bottle of Vermont maple syrup from the producer's website. Charles buys a sweater made in Guatemala. Charles's employer upgrades all of its computer systems using U.S.-made parts. The state of Pennsylvania repaves highway PA 320, which goes through the center of Swarthmore. O O O O O Dina gets a new refrigerator made in the United States.

Answer 1

GDP is the value of final goods and services produced during a given period of time in monetary terms. GDP is the sum of consumption, investment, government service and net exports. The impact of each of the given transactions on GDP is required to be figured. 1. Dina's father who lives in Sweden. He orders a bottle of maple syrup from Vermont- this bottle made in US exported to Sweden. This will increase exports of the country. Tick X Charles buys a sweater made in Guatemala. – this comes under the consumption (C) and imports (M) as this increases the consumption of Carlos. Since the sweater made in Guatemala, this increases the imports. Tick C and M. Charles's employer upgrades all of its computer using US made parts- this will increase the investment of US.

Tick I The state of Pennsylvania repaves highway which goes through the centre of Swarthmore- this comes under the government expenditure of US. Tick G 5. Dina get a new refrigerator made in United states this is part of consumption. Tick C Summary с с х м Transaction Dina's father in Sweden orders a bottle of Vermont maple syrup from the producer's website. т O Charles buys a sweater made in Guatemala. Charles's employer upgrades all of its computer systems using U.S.-made parts. The state of Pennsylvania repaves highway PA 320, which goes through the center of Swarthmore. • Dina gets a new refrigerator made in the United States.