Answer:
Investment spending increases
b. Net export increases
c. Government spending increases
d. consumption spending increases
e. consumption spending increases
net export decreases
Explanation:
Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year
GDP calculated using the expenditure approach = Consumption spending by households + Investment spending by businesses + Government spending + Net export
Net export = exports – imports
When exports exceed import there is a trade deficit and when import exceeds import, there is a trade surplus.
A domestic business purchases a domestically produced computer to use in a business office increases business inventory.
The purchase of a computer by a foreign company increases export. export is a positive function of net export, so net export increases
The government's purchase increases government spending
The purchase of a computer is a durable purchase by households. This increases consumption spending
Also, the purchase of a computer from a foreign country is an import Import is a negative function of net export. so net export reduces
