Question

3. Categories of expenditures

Carlos and Deborah Azinian live in Swarthmore, PA. Their son, Felix, owns his own plumbing business.

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 Federal Aviation Administration expands the runways at Philadelphia International Airport, which is just a few miles from Carlos and Deborah's house.
Felix buys a new set of tools to use in his plumbing business.
Carlos's employer assigns him to provide consulting services to an Australian firm that's opening a manufacturing facility in China.
Deborah buys a new BMW, which was assembled in Germany.
Deborah gets a haircut.

Answer 1

1.Since federal aviation is a central government authority that purchases in the international airport so it is a type of government purchase because according to it when the government buys goods and services.the government purchases.

2. Felix case is an investment case because he buys plumbing tools for his work and earning, which is an asset for him in future.

3. Carlo's case is export of service because it is dealing with client of Australia and China outside the country.

4.Since Deborah buys his new car from another country and also assembling done in Germany So it is an import

5. When Deborah gets anew hair cut it comes under personal consumption because it is the service he gets by the exchange of money to the barber.