Question

Jacques and Kyoko Lalime live in Swarthmore, PA. Kyoko's father, Musashi, 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.TransactionKyoko gets a new video camera made in the United States. Jacques buys a bottle of Italian wine. The state of Pennsylvania repaves highway PA 320, which goes through the center of Swarthmore. Kyoko's father in Sweden orders a bottle of Vermont maple syrup from the producer's website. Jacques's employer upgrades all of its computer systems using U.S.-made parts.

Answer 1

Explanation:

1. Kyoko gets a new video camera made in the United States: included in Consumption (C) account of the GDP

2.Jacques buys a bottle of Italian wine: included in Imports (M) account of the GDP because it is consumed in U.S soil but not produced there.

3.The state of Pennsylvania repaves highway PA 320, which goes through the center of Swarthmore: included in government purchases (G) account of the GDP because repaves are paid by the state of Pennsylvania.

4.Kyoko's father in Sweden orders a bottle of Vermont maple syrup from the producer's website: included in exports (X) account of the GDP because it produced in the U.S soil.

5. Jacques's employer upgrades all of its computer systems using U.S.-made parts: included in the Investment (I) account of the GDP because it is capital expenditure.