Question

Kenji and Lucia Murphy live in Swarthmore, PA. Lucia's father, Paolo, 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
Lucia's father in Sweden orders a bottle of Vermont maple syrup from the producer's website.
The state of Pennsylvania repaves highway PA 320, which goes through the center of Swarthmore.
Kenji buys a bottle of Italian wine.
Lucia gets a new video camera made in the United States.
Kenji's employer upgrades all of its computer systems using U.S.-made parts.

Answer 1

	C	I	G	X	M
Lucia's father in Sweden orders a bottle of Vermont maple syrup from the producer's website.				✓
The state of Pennsylvania repaves highway PA 320, which goes through the center of Swarthmore.			✓
Kenji buys a bottle of Italian wine.					✓
Lucia gets a new video camera made in the United States.	✓
Kenji's employer upgrades all of its computer systems using U.S.-made parts.		✓

Lucia Father lives in Sweden and buys maple bottle, it means US exporting maple bottle to Sweden.

The state expenditure on the highway. It is counted as government spending.

Kejji buys italian wine lives in US. It means US importing wines from the Italy.

Lucia buys video camera made in US for personal use. Hence, it is consider as consumption.

Kenji employer investing in upgrading of computer system. Hence, it is consider as investment.