Suppose the following transactions occur during the current year:
1. | Musashi orders 50 bottles of wine from a French distributor at a price of $30 per bottle. |
2. | A U.S. company sells 200 textbooks to a Canadian company at $45.00 per textbook. |
3. | Sean, a U.S. citizen, pays $1,500 for a laptop he orders from Microell (a U.S. company). |
Complete the following table by indicating how the combined effects of these transactions will be reflected in the U.S. national accounts for the current year.
Hint: Be sure to enter a “0” if none of the transactions listed are included in a given category and to enter a minus sign when the balance is negative.
Amount |
|
---|---|
(Dollars) |
|
Consumption | |
Investment | |
Government Purchases | |
Imports | |
Exports | |
Net Exports | |
Gross Domestic Product (GDP) |
Consumption = Sean purchase of the laptop from the US company = 1500
Investment = 0
Government purchases = 0
Imports = Mushashi order = 50*30 = 1500
Exports = Textbook sales = 200*45 = 9000
Net Exports = Exports - Imports = 9000-1500 = 7500
Gross domestic product(GDP) = C+I+G+NX = 1500+0+0+7500 = 9000
Suppose the following transactions occur during the current year: 1. Musashi orders 50 bottles of wine...
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