Question

Dmitri and Frances Doherty live in Swarthmore, PA. Frances's father, Jake, 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 The state of Pennsylvania repaves highway PA 320, which goes through the center of Swarthmore. Dmitri buys a sweater made in Guatemala. Dmitri's employer upgrades all of its computer systems using U.S.-made parts. Frances gets a new refrigerator made in the United States. Frances's father in Sweden orders a bottle of Vermont maple syrup from the producer's website.

Answer 1

The state of Pennsylvania repaves highway PA 320, which goes through the center of Swarthmore.- this is an export of services by a US based firm. Thus this enters as X

Dmitri buys a sweater made in Guatemala- this sweater was imported from Guatemala. Thus it is an import and enters as M

Dmitri's employer upgrades all of its computer systems using U.S.-made parts- Investment

Frances's father in Sweden orders a bottle of Vermont maple syrup from the producer's website-Export

Frances gets a new refrigerator made in the United States-A US citizen buys a camera manufactured in US. This is domestic consumption and enters as C