In: Economics
Which of the following transactions would be included in this year's GDP for thet United States?
a) Jennifer buys a rug imported from Mexico.
b) Melissa buys stock in an American textile company.
c) Jennifer purchases a table over the Internet from a North Carolina furniture manufacturer.
d) Melissa purchases a table over the Internet from a Mexican manufacturer.
Answer
Option c
GDP is
Y=C+I+G+NX
C=consumption
I=investment spending
G=govenment spending
NX=net export means import is not added
It is a sum of final goods and services
Stock is not the final investment it is an old investment
The tale from Carolina furniture is not an import and it is a final
product so it is added to GDP
The table from Mexican manufacturer is an import