Question

In: Economics

1. What components of final expenditure (C, I, G, NX) if any, would the following transactions...

1. What components of final expenditure (C, I, G, NX) if any, would the following transactions change? (provide numerical values for parts g and k)

a. A U.S. family buys a new refrigerator made in Illinois

b. A U.S. family buys a new refrigerator made in China

c. You buy a new house in Chicago

d. You buy a pizza from Dominos

e. California repaves U.S. highway one.

f. GM sells a car from its inventory of cars

g. You buy a house built in 2000. The house cost $120,000 in 2000, your purchase price is $200,000, of which $10,000 goes to a real estate agent as sales commission.

h. U.S. government spending for unemployment benefits increases because of increasing unemployment.

i. A parent pays $1,000 for daycare for their child.

j. Ben and Jerrys buy milk to make ice cream.

k. You buy $20 of yarn at a craft store. You use the yarn to make a sweater, which would cost $80 if sold at Target.

l. You pay rent for an apartment in a building that was built in 2002.

m. Fifth third bank lends a manufacturer $1,000,000.

n. The City of Chicago purchases new police cars

o. Wildfires destroy homes in California (do not count the cost of fighting the fires).

1. What components of final expenditure (C, I, G, NX) if any, would the following transactions change? (provide numerical values for parts g and k)

a. A U.S. family buys a new refrigerator made in Illinois

b. A U.S. family buys a new refrigerator made in China

c. You buy a new house in Chicago

d. You buy a pizza from Dominos

e. California repaves U.S. highway one.

f. GM sells a car from its inventory of cars

g. You buy a house built in 2000. The house cost $120,000 in 2000, your purchase price is $200,000, of which $10,000 goes to a real estate agent as sales commission.

h. U.S. government spending for unemployment benefits increases because of increasing unemployment.

i. A parent pays $1,000 for daycare for their child.

j. Ben and Jerrys buy milk to make ice cream.

k. You buy $20 of yarn at a craft store. You use the yarn to make a sweater, which would cost $80 if sold at Target.

l. You pay rent for an apartment in a building that was built in 2002.

m. Fifth third bank lends a manufacturer $1,000,000.

n. The City of Chicago purchases new police cars

o. Wildfires destroy homes in California (do not count the cost of fighting the fires).

Expert Solution

Rahul Sunny answered 7 months ago

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