Manuel and Poornima White live in Swarthmore, PA. Their son, Shen, owns his own plumbing business. 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 G M Shen buys a new set of tools to use in his plumbing business. Poornima buys a new BMW, which was assembled in Germany. Manuel's employer assigns him to provide consulting services to an Australian firm that's opening a manufacturing facility in China. The Federal Aviation Administration expands the runways at Philadelphia International Airport, which is just a few miles from Manuel and Poornima's house. Poornima gets a haircut. [0
Manuel and Poornima White live in Swarthmore, PA. Their son, Shen, owns his own plumbing business. 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 G M Shen buys a new set of tools to use in his plumbing business. Poornima buys a new BMW, which was assembled in Germany. Manuel's employer assigns him to provide consulting services to an Australian firm that's opening a manufacturing facility in China. The Federal Aviation Administration expands the runways at Philadelphia International Airport, which is just a few miles from Manuel and Poornima's house. Poornima gets a haircut. [0
Chapter5: Gross Domestic Product
Section: Chapter Questions
Problem 9SQ
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Question
Transcribed Image Text:Manuel and Poornima White live in Swarthmore, PA. Their son, Shen, owns his own plumbing business.
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
G
M
Shen buys a new set of tools to use in his plumbing business.
Poornima buys a new BMW, which was assembled in Germany.
Manuel's employer assigns him to provide consulting services to an Australian firm that's opening a
manufacturing facility in China.
The Federal Aviation Administration expands the runways at Philadelphia International Airport, which is just
a few miles from Manuel and Poornima's house.
Poornima gets a haircut.
Expert Solution
Step 1
Components of GDP:-
C= Consumption
I= Investment
G= Government spending
X= Export
M= Import
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