Question

Identify the component(s) of GDP (in the expenditure approach) to which each of the following belongs:

A U.S. resident’s purchase of a new automobile manufactured in Japan.

Construction of a new dormitory at Maryville University.

A household’s purchase of ten hours of legal advice from a lawyer.

St. Louis City’s acquisition of 10 new police cars.

Missouri farmers sell their corn to buyers in China.

University of Missouri builds a new nuclear-physics laboratory.

Answer 1

a.      A U.S. resident’s purchase of a new automobile manufactured in Japan- Imports

b.      Construction of a new dormitory at Maryville University- Investment

c.       A household’s purchase of ten hours of legal advice from a lawyer – Personal Consumption Expenditure.

d.      Louis City’s acquisition of 10 new police cars – Government Expenditure

e.       Missouri farmers sell their corn to buyers in China.- Exports

University of Missouri builds a new nuclear-physics laboratory.-Investment