Eric and Ginny Gaffney live in Swarthmore, PA. Ginny's father, Kenji, 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).

a. Ginny's father in Sweden orders a bottle of Vermont maple syrup from the producer's website.
b. Ginny gets a new video camera made in the United States.
c. Eric buys a bottle of Italian wine.
d. The state of Pennsylvania repaves highway PA 320, which goes through the center of Swarthmore.
e. Eric's employer upgrades all of its computer systems using U.S.-made parts.

Question

02-06-2021
Business

Answered

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Eric and Ginny Gaffney live in Swarthmore, PA. Ginny's father, Kenji, 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).

a. Ginny's father in Sweden orders a bottle of Vermont maple syrup from the producer's website.
b. Ginny gets a new video camera made in the United States.
c. Eric buys a bottle of Italian wine.
d. The state of Pennsylvania repaves highway PA 320, which goes through the center of Swarthmore.
e. Eric's employer upgrades all of its computer systems using U.S.-made parts.

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