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Indicate what components of GDP (if any) each of the following transactions would affect. Check all that apply. Transaction Consumption Investment Government Purchases Net Exports Your parents buy a bottle of French wine. Aunt Jane buys a new house from a local builder. You pay a domestic plumber for fixing a leak in your bathroom. Ford manufactures a Focus and sells it to Avis, the car rental company. Uncle Paul pays a domestic contractor for renovating his home. Ford sells a Mustang from its inventory to the Martinez family. Uncle John receives a check from the federal government for unemployment insurance benefits. Texas hires public middle school teachers.

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Answer:

the answers are below

Step-by-step explanation:

1.Your parents buy a bottle of French wine.

Household Consumption would be affected. There would be a rise in household consumption but gdp will not be affected. Net exports would fall, the bottle is an imported good

2. Aunt Jane buys a new house from a local builder.

Investment would rise. Getting a house is an investment. So gdp would also rise.

3. You pay a domestic plumber for fixing a leak in your bathroom.

Consumption is affected

4. Ford manufactures a Focus and sells it to Avis, the car rental company.

Consumption would increase since it is selling to a rental company, investment would fall and gdp would be unaffected

5. Uncle Paul pays a domestic contractor for renovating his home.

Consumption is affected

6. Ford sells a Mustang from its inventory to the Martinez family.

Consumption would increase since it was bought by a household, ford would have a fall in investment since the car was an investment till it was sold. Gdp will not be affected

7. Uncle John receives a check from the federal government for unemployment insurance benefits.

Consumption would be affected and so also would government purchases

8.Texas hires public middle school teachers.

Government purchases would be affected and so also would investment since education is an investment in the future

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