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.

Solutions

Expert Solution

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

Rahul Sunny answered 1 year ago

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