Question

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 I 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. Dina gets a new refrigerator made in the United States.

Answer 1

Dina's father in Sweden orders a bottle of Vermont maple syrup from the producer's website. INCREASES EXPORTS (X) AND INCREASES THE GDP

Charles buys a sweater made in Guatemala. INCREASES IMPORTS (M) AND REDUCES THE GDP

Charles's employer upgrades all of its computer systems using U.S.-made parts. INCREASES INVESTMENT (I) AND INCREASES THE GDP

The state of Pennsylvania repaves highway PA 320, which goes through the center of Swarthmore. INCREASES GOVERNMENT EXPENSES (G) AND INCREASES THE GDP

Dina gets a new refrigerator made in the United States. INCREASES CONSUMPTION (C) AND INCREASES THE GDP