To which component of US GDP expenditure does each of the...

To which component of US GDP expenditure does each of the following belong to? Windshields bought by a factory for making cars You buy a pair of shoes at a department store. The cars made in the US and exported to Japan A company purchases some computers for the workers.

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Transcript

00:01 Hi guys, my name is matt, and today we're going to be answering the question, to which component of u .s.

00:05 Gdp expenditure does each of the following belong to? so, let's review gdp.

00:11 Gdp is typically measured by the expenditure approach, which includes the following components.

00:16 First, we have consumption, which is spending by households on goods and services without the purchasing a new housing.

00:25 Then we have investments, which is spending on capital goods that will be used for future production.

00:30 This includes business investments and equipment and structures, residential construction, and changes of business inventory.

00:40 Next, we have government spending, which is spending by all levels of government on goods and services.

00:47 And lastly, we have net exports, which we calculate by exports minus imports.

00:53 Exports being goods and services produced domestically and sold abroad, while imports are goods and service produced abroad and sold domestically.

01:03 So let's break down each of the cases.

01:06 So the first case we have are windshields bought by a factory for making cars.

01:12 So just number that.

01:15 These windshields are intermediate good that will be used in the production of a final good, which is cars.

01:21 So therefore, they're considered business investment inventory...

Question

To which component of US GDP expenditure does each of the following belong to? Windshields bought by a factory for making cars You buy a pair of shoes at a department store. The cars made in the US and exported to Japan A company purchases some computers for the workers.

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