Question

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 Jake buys a sweater made in Guatemala. 0 ? The Lanes build an addition on their house. ? ? ? ? ? The Pennsylvania Department of Transportation, a state administration, fixes potholes along PA highway 23, which feeds into the center of Conshohocken. ? ? ? ? ? Latasha gets a new refrigerator made in the United States. ? ? ? ? ? Nick paints a landscape and sells it to an art collector in Canada. ? ? ? ? ? Grade It Now Save & Continue 

          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
Jake buys a sweater made in Guatemala.
0
?
The Lanes build an addition on their house.
?
?
?
?
?
The Pennsylvania Department of Transportation, a state administration, fixes potholes along PA highway
23, which feeds into the center of Conshohocken.
?
?
?
?
?
Latasha gets a new refrigerator made in the United States.
?
?
?
?
?
Nick paints a landscape and sells it to an art collector in Canada.
?
?
?
?
?
Grade It Now
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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 Jake buys a sweater made in Guatemala. 0 ? The Lanes build an addition on their house. ? ? ? ? ? The Pennsylvania Department of Transportation, a state administration, fixes potholes along PA highway 23, which feeds into the center of Conshohocken. ? ? ? ? ? Latasha gets a new refrigerator made in the United States. ? ? ? ? ? Nick paints a landscape and sells it to an art collector in Canada. ? ? ? ? ? Grade It Now Save Continue

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Principles of Economics
Principles of Economics
Gregory Mankiw 8th Edition
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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 G X M Jake buys a sweater made in Guatemala. The Lanes build an addition on their house. The Pennsylvania Department of Transportation, a state administration, fixes potholes along PA highway 23, which feeds into the center of Conshohocken. Latasha gets a new refrigerator made in the United States. Nick paints a landscape and sells it to an art collector in Canada.
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Transcript

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00:01 Identify whether or not each of the following transactions would be included in gdp.
00:06 And if so, which expenditure or income component of gdp is it a part of? a, a consumer purchases a used television set.
00:14 The transaction is gdp and is part of.
00:17 So actually, no, this is not a part of gdp.
00:22 It is not included in the transaction because secondhand goods are not included in gdp because that good was already calculated when it was sold new.
00:41 B, a toy store adds to its stock of inventories.
00:45 The transaction is part of gdp and is a part of, so yes, this is included in gdp, and it comes under expenditures because it's an investment by the toy store.
01:09 C, a consumer buys a new car.
01:12 This transaction is a part of gdp and is part of, so yes, buying a new car is included in gdp, and it comes under expenditure components because purchasing a new car is a condition.
01:24 Consumption expenditure.
01:41 D, a canadian corporation, pays interest to owners of its bonds.
01:46 This transaction is gdp and is part of, so yes, this transaction is a part of gdp, and it comes under income components because interest is income earned by people.
02:09 A provincial government repaves a highway...
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