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. Transaction C I G X M Gilberto buys a bottle of Italian wine. Juanita's father in Sweden orders a bottle of Vermont maple syrup from the producer's website. Juanita gets a new video camera made in the United States. The state of Pennsylvania repaves highway PA 320, which goes through the center of Swarthmore. 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:

Gilberto buys a bottle of Italian wine. IMPORTS (M) REDUCES THE GDP

Juanita's father in Sweden orders a bottle of Vermont maple syrup from the producer's website. EXPORTS (X) INCREASES THE GDP

Juanita gets a new video camera made in the United States. CONSUMPTION (C) INCREASES THE GDP

The state of Pennsylvania repaves highway PA 320, which goes through the center of Swarthmore. GOVERNMENT EXPENSES (G) INCREASES THE GDP

Gilberto's employer upgrades all of its computer systems using U.S.-made parts. INVESTMENT (I) INCREASES THE GDP