2. Accounting for trade in goods and services Consider the following transactions that occur during the current year: 1. Musashi, a liquor store owner in Canada, orders 30 cases of mescal from a Mexican distributor at a price of $90.00 per case. са 2. A Canadian company sells 100 video processor chips to a Chinese company at $10.00 per chip. 3. Sean, a Canadian citizen, pays $670 for a surfboard he orders from Greatwaves (a Canadian company). Complete the following table by indicating how the combined effects of these transactions will be reflected in Canadian national accounts for the current year. Hint: Remember to enter a minus sign when the balance is negative. Amount (Dollars) Imports Exports Domestic Spending Net Exports Gross Domestic Product (GDP)
2. Accounting for trade in goods and services Consider the following transactions that occur during the current year: 1. Musashi, a liquor store owner in Canada, orders 30 cases of mescal from a Mexican distributor at a price of $90.00 per case. са 2. A Canadian company sells 100 video processor chips to a Chinese company at $10.00 per chip. 3. Sean, a Canadian citizen, pays $670 for a surfboard he orders from Greatwaves (a Canadian company). Complete the following table by indicating how the combined effects of these transactions will be reflected in Canadian national accounts for the current year. Hint: Remember to enter a minus sign when the balance is negative. Amount (Dollars) Imports Exports Domestic Spending Net Exports Gross Domestic Product (GDP)
Chapter6: Tracking The U.s. Economy
Section: Chapter Questions
Problem 1.2P
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Question
Consider the following transactions that occur during the current year:
1. | Musashi, a liquor store owner in Canada, orders 30 cases of mescal from a Mexican distributor at a price of $90.00 per case. |
2. | A Canadian company sells 100 video processor chips to a Chinese company at $10.00 per chip. |
3. | Sean, a Canadian citizen, pays $670 for a surfboard he orders from Greatwaves (a Canadian company). |
Net Exports (NX) = Exports−Imports
GDP = C+I+G+(X−M)
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