Question

Categories of expenditures Gilberto and Juanita Jones live in Swarthmore, PA. Juanita's father, Lorenzo, lives in Sweden. 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.
a. Transaction C I G X M Gilberto buys a bottle of Italian wine.
b. Juanita's father in Sweden orders a bottle of Vermont maple syrup from the producer's website.
c. Juanita gets a new video camera made in the United States.
d. The state of Pennsylvania repaves highway PA 320, which goes through the center of Swarthmore.
e. Gilberto's employer upgrades all of its computer systems using U.S.-made parts.

Please also explain how the answer came about

Answer 1

Answer:

a. Imports

b.Exports or Consumption

c. Consumption

d. Government Spending

e. Consumption.

Explanation:

a. if Gilberto buys Italian wine in the US that is part of consumption spending because the store that Gilberto buys from already imported the wine from Italy and paid all the costs that go with it but if Gilberto orders the wine from Italy that will be part of imports because the wine will have to be imported then have all those importing costs on it.

b. Juanitas father will be exporting the syrup if its from the US even though he might buy it online as he lives in Sweden .

c. Juanita will be part of consumption spending for goods and services as this will be part of the US GDP consumption spending.

d. This is part of government purchases as the government will spend on everything that includes repaving the high way.

e. Consumption spending because they are manufactured in the US and they are in the US therefore its part of the US purchases of goods and services.