Macroeconomics
13th Edition
ISBN: 9781337617390
Author: Roger A. Arnold
Publisher: Cengage Learning
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Question
Chapter 7, Problem 13QP
To determine
Explain an expenditure approach of
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Does the expenditure approach to computing GDP measure U.S. spending on all goods, U.S. spending on only U.S. goods, or the U.S. and foreign spending on only U.S. goods? Explain your answer.
Bob and Cho Tokarev live in Conshohocken, PA. Cho's father, Eric, lives in Sweden.
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 (1), government purchases (G), exports (X), or imports (M). Check all that apply.
Transaction
The Federal Aviation Administration expands the runways at Philadelphia International Airport,
which is just a few miles from Bob and Cho's house..
Cho gets a new video camera made in the United States.
Cho buys a new BMW, which was assembled in Germany.
Bob's employer upgrades all of its computer systems using U.S.-made parts.
Cho's father in Sweden orders a bottle of Vermont maple syrup from the producer's website.
C
3
000
I
D
G
X
M
000
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
I
G
X
M
The Pennsylvania Department of Transportation, a state administration, fixes potholes along PA highway 23, which feeds into the center of Conshohocken.
Felix's employer upgrades all of its computer systems using U.S.-made parts.
Janet's father in Sweden orders a bottle of Vermont maple syrup from the producer's website.
Janet gets a new video camera made in the United States.
Felix buys a sweater made in Guatemala.
Chapter 7 Solutions
Macroeconomics
Ch. 7.1 - Prob. 1STCh. 7.1 - Prob. 2STCh. 7.2 - Prob. 1STCh. 7.2 - Prob. 2STCh. 7.2 - Prob. 3STCh. 7.4 - Prob. 1STCh. 7.4 - Prob. 2STCh. 7.4 - Prob. 3STCh. 7 - Prob. 1QPCh. 7 - Prob. 2QP
Ch. 7 - Prob. 3QPCh. 7 - Prob. 4QPCh. 7 - Prob. 5QPCh. 7 - Prob. 6QPCh. 7 - Prob. 7QPCh. 7 - Prob. 8QPCh. 7 - Prob. 9QPCh. 7 - Prob. 10QPCh. 7 - Prob. 11QPCh. 7 - Prob. 12QPCh. 7 - Prob. 13QPCh. 7 - Prob. 14QPCh. 7 - Prob. 1WNGCh. 7 - Prob. 2WNGCh. 7 - Prob. 3WNGCh. 7 - Prob. 4WNGCh. 7 - Prob. 5WNGCh. 7 - Prob. 6WNGCh. 7 - Prob. 7WNGCh. 7 - Prob. 8WNGCh. 7 - Prob. 9WNGCh. 7 - Prob. 10WNGCh. 7 - Prob. 11WNG
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