Discuss which of the following fall into the categories of consumption, investment, government expenditure and net exports from the Y = C + I + G + NX (X – M) identity, and whether the impact is to increase or decrease GDP. (a) Charles buys a second-hand textbook from Tim. (b) When Charles bought the book, he paid Sarah $10 to collect it from Tim. (c) Thomas buys a new house (d) Your firm sells meat to Indonesia (e) The fish and chips shop down the road buys fish to make meals for diners. (f) The same shop buys a deep fryer to fry fish for meals.
Discuss which of the following fall into the categories of consumption, investment, government expenditure and net exports from the Y = C + I + G + NX (X – M) identity, and whether the impact is to increase or decrease GDP. (a) Charles buys a second-hand textbook from Tim. (b) When Charles bought the book, he paid Sarah $10 to collect it from Tim. (c) Thomas buys a new house (d) Your firm sells meat to Indonesia (e) The fish and chips shop down the road buys fish to make meals for diners. (f) The same shop buys a deep fryer to fry fish for meals.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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$ 500,000 $ 40,0000 $ 80,000 $ 10,000 $ 10,000 $ 50,000 $ 20,000 $ 7,000
Discuss which of the following fall into the categories of consumption, investment, government expenditure and net exports from the Y = C + I + G + NX (X – M) identity, and whether the impact is to increase or decrease GDP.
(a) Charles buys a second-hand textbook from Tim.
(b) When Charles bought the book, he paid Sarah $10 to collect it from Tim.
(c) Thomas buys a new house
(d) Your firm sells meat to Indonesia
(e) The fish and chips shop down the road buys fish to make meals for diners.
(f) The same shop buys a deep fryer to fry fish for meals.
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