Answer:
(a.) The state of Pennsylvania repaves highway PA 320, which goes through the center of Swarthmore. – <em><u>This will fall under the category of Government Spending(G)</u></em>
Reason: In this case the government is utilizing money in order to construct highway that will benefit public.
(b.) Musashi buys a sweater made in Guatemala –<em><u>This will fall under the category of imports(M)</u></em>
Reason: The product/commodity is being produced outside domestic boundaries, hence it is calculated under imports
(c.) Rina gets a new refrigerator made in the United States. - <em><u>This will fall under the category of consumption(C)</u></em>
Reason: Commodities produced within the domestic boundaries and further consumed or bought within domestic boundaries will be calculated under consumption
(d.) Rina's father in Sweden orders a bottle of Vermont maple syrup from the producer's website. - <em><u>This will fall under the category of exports(X)</u></em>
Reason: Here the maple syrup is being delivered to a third party living abroad so it will be calculated under export .
(e.) Musashi's employer upgrades all of its computer systems using U.S.-made parts. - <em><u>This will fall under the category of investment(I)</u></em>
Reason: Money spent to upgrade the system in order to increase productivity and this indeed will have an effect for a long duration. Therefore it'll be seen as an investment.
Answer:
Lower; Higher
Explanation:
Lower; Higher
A consumer always wants to pay a lower price for the commodity in order to increase the consumer surplus. While the producer can increase their profit by charging higher prices. Therefore, the producer will try to charge a higher possible price.
