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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 (1), government purchases (G), exports (X), or imports (M). Transaction

i. Andrew's employer upgrades all of its computer systems using U.S.-made parts.
ii. Beth gets a new refrigerator made in the United States Andrewbuys a bottle of Italian wine.
iii. The state of Pennsylvania repaves highway PA 320, which goes through the center of Swarthmore.
iv. Beth's father in Sweden orders a bottle of Vermont maple syrup from the producer's website,

User Viks
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1 Answer

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29 votes

Answer and Explanation:

The classification is as follows:

i. It is an investment as the employer of andrew spent money for upgrading the system so that the productivity could be increased due to this it will give benefits till the long term

ii. It is a consumption as the product is made in US and the same should be consumed in US only

It is a consumption and imports as the andrews purchased the bottle

iii. It is a government spending as the government used the money for creating the infrastructure that should beneficial for the general public

iv. It is an export as father lived in sweden and the maple syrup should be delivered to the foreign party

User Slicksim
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