Question

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

Answer 1

a. Imports (M), b. Government Expenditure (G), c. Exports (X), d. Investment 'I'

Step-by-step explanation:

a) 'Kevin buys a bottle of Italian wine' is a part of US Imports (M)

b) 'The state of Pennsylvania repaves highway PA 320' is a part of US Government Expenditure (G)

c) 'Maria's father in Sweden orders a bottle of Vermont maple syrup from the producer's website' is a part of US Exports (X)

d) 'Kevin's employer upgrades all of its computer systems using U.S.-made parts' is a part of US Investment 'I'