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Jet001 [13]
2 years ago
12

Charles and Dina Bloom live in Swarthmore, PA. Dina's father, Gilberto, 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.__Transaction C I G X M Dina's father in Sweden orders a bottle of Vermont maple syrup from the producer's website. __Charles's employer upgrades all of its computer systems using U.S.-made parts. __The state of Pennsylvania repaves highway PA 320, which goes through the center of Swarthmore. __Dina gets a new video camera made in the United States. __Charles buys a bottle of Italian wine.
Business
1 answer:
Reil [10]2 years ago
3 0

Answer:

Dina's father in Sweden orders a bottle of Vermont maple syrup from the producer's website. EXPORT

Charles's employer upgrades all of its computer systems using U.S.-made parts. INVESTMENT

The state of Pennsylvania repaves highway PA 320, which goes through the center of Swarthmore. GOVERNMENT PURCHASE

Dina gets a new video camera made in the United States. CONSUMPTION

Charles buys a bottle of Italian wine. IMPORT

Explanation:

The first example shows Dina's father consuming an US product. From the point of view of the US, this is an export. In order for Gilberto to consume a US product in Sweden, it had to be exported beforehand.

The second example shows typical investment. Charles's employer invested funds to improve his machinery in the company. This is a part of GDP that is crucial for the future prosperity of the US economy.

The third example shows the government upgrading US infrastructure. Therefore, it is a government purchase. This part of GDP usually improves public goods and infrastructure.

The fourth example shows a US resident consuming a US produced good. Therefore, it is an example of consumption, since the good does not come from a foreign country.

The last example is an example of import, since Charles uses a product that comes from a foreign country.

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