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Indicate what components of GDP (if any) each of the following transactions would affect. Check all that apply.

a. Uncle Paul pays a domestic contractor for renovating his home.
b. Aunt Jane buys a new house from a local builder.
c. You purchase a box of Belgium chocolate.
d. Ford manufactures a Focus and sells it to Avis, the car rental company.
e. You pay a domestic plumber for fixing a leak in your bathroom.
f. Ford sells a Mustang from its inventory to the Martinez family.
g. California hires workers to repave Highway 101.
h. The federal government sends your grandmother a Social Security check.

1. Consumption
2. Investment
3. Government Purchases
4. Net Exports

Respuesta :

Answer and Explanation:

As we know that

Gross domestic product = Consumption + Investment + Government purchase + Net exports

where,

Net exports = Exports - imports

a. Uncle Paul pays a domestic contractor to have his house renovated.  = Consumption

b. Aunt Jane buys a new house from a nearby building firm.  = Investment

c. You buy chocolate from Belgium in a box.  = Consumption & net exports

d. Ford is making a Focus and marketing it to Avis, the car rental company.  = Investment

To fix a leak in your bathroom you pay a domestic plumber.  = Consumption

e. Ford is selling a Mustang to the Martinez family from its inventory.  = Consumption and investment

f. California is hiring people to repave Highway 101.  = Government purchase

g. The Federal government is sending a Social Security check to your grandmother. The same is not involved in GDP as it has transfer payment

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