Question

Indicate what components of GDP (if any) each of the following transactions would affect. Check all that apply. Transaction Consumption Investment Government Purchases Net Exports Honda expands its factory in Ohio. Ford sells a Mustang from its inventory to the Martinez family. Aunt Polly buys a new air-conditioner from a domestic manufacturer. Texas hires public middle school teachers. Your parents pay an accountant to file their tax returns. You buy a new Toshiba computer. Uncle John receives a check from the federal government for unemployment insurance benefit. Your parents buy a new house from a local builder.

Answer 1

Honda expands its factory in Ohio. Investment.

Ford sells a Mustang from its inventory to the Martinez family. Decreases investment as this is from inventory.

Aunt Polly buys a new air-conditioner from a domestic manufacturer. Consumption.

Texas hires public middle school teachers. Government spending.

Your parents pay an accountant to file their tax returns. Consumption

You buy a new Toshiba computer. Consumption

Uncle John receives a check from the federal government for unemployment insurance benefit. Excluded. Transfer payment.

Your parents buy a new house from a local builder. Investment increases as real estate is included in investments.