Question

Attempts: 1 keep the Highest: 12 3. Categories of expenditures Gilberto and Juanita Ivanov live in Swarthmore, PA. Juanita's father, Lorenzo, 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 I G X M Juanita gets a new refrigerator made in the United States. Juanita's father in Sweden orders a bottle of Vermont maple syrup from the producer's website. 0 0 0 0 10101010 Gilberto buys a sweater made in Guatemala. The state of Pennsylvania repaves highway PA 320, which goes through the center of Swarthmore. 0 0 0 0 Gilberto's employer upgrades all of its computer systems using U.S.-made parts.

Answer 1

1 - This will be part of Consumption ( C) as the refrigerator used has been made in US only.

2 - This is export as the producer website is of US and sweden is in Europe. Hence it will form part of export of US GDP.

3 - This will be part of consumption as Guatemala is in US itself and the sweater is made there only hence will be domestic consumption.

4 - This will form the part of the ( G ) i.e government expenditure as the repaving work will be done on the expense of the government.

5 - This will form part of (I) i.e investment. As per the statement the investment has been done in technology to upgrade the computer systems.