For each of the following, how would they be included/counted in the final sales
ID: 1195356 • Letter: F
Question
For each of the following, how would they be included/counted in the final sales approach of GDP?
The University of California buys a new computer.
Charles buys a new CD player.
Marian buys a new mountain cabin.
Vikki buys an old mansion with hopes of restoring it.
Farmer Brown buys a used combine harvester
Profits earned by Ford Motor Company in 2009 on automobile production in Ireland.
Social Security benefits paid by the U.S. government in 2015.
The University of California buys a new computer.
Charles buys a new CD player.
Marian buys a new mountain cabin.
Vikki buys an old mansion with hopes of restoring it.
Farmer Brown buys a used combine harvester
Profits earned by Ford Motor Company in 2009 on automobile production in Ireland.
Social Security benefits paid by the U.S. government in 2015.
Explanation / Answer
Sales approach or expenditure approach of GDP includes the following components:
Gross Private Consumption Expenditures(C)
Gross Private Investment (I)
Government Purchases (G)
Net Exports (X - M)
GDP = C + I + G +NX
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