3. Categories of expenditures Dmitri and Frances Cuttner live in Swarthmore, PA.

Question

3. Categories of expenditures Dmitri and Frances Cuttner live in Swarthmore, PA. Their son, Jake, owns his own plumbing business 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 Dmitri's employer assigns him to provide consulting services to an Australian firm that's opening a manufacturing facility in China. The state of Pennsylvania repaves highway PA 320, which goes through the center of Swarthmore. Dmitri buys a sweater made in Guatemala Frances gets a new video camera made in the United States Jake buys a new set of tools to use in his plumbing business

Explanation / Answer

a) Providing the consulting services to an Australian firm that's opening a manufacturing facility to China will be part of "Exports".

b) Highway pavement will be part of "government expenditure".

c) Buying a sweater made in Guatemala will be part of "imports".

d) Frace buying a video camera will be part of "consumption".

e) Jake buying anything for his business will be part of an "investment".

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