How are the following activities counted in U.S. aggregate demand and/or the agg
ID: 1106500 • Letter: H
Question
How are the following activities counted in U.S. aggregate demand and/or the aggregate demand of the relevant foreign country? That is, which count toward.s aggregate demand and if so, in what category? a) You buy a new economics textbook at the Holy Cross Bookstore. b) You buy your friend's used economics text c) You go to the woods, cuts down trees, and build yourself a log cabin. d) You purchase 100 shares of IBM stock. e) You purchase a pair of Nike running shoes made in Vietnam. f) American Airlines buys an Airbus A320 (Airbus is a European consortium). g) The city of Worcester buys a new Chevy Interceptor police car. h) A Boston College booster gives a BC basketball player $10,000. book.Explanation / Answer
A.
It will count towards the aggregate demand of the USA and it will count under the consumption category.
B.
It will not count towards the aggregate demand of the USA in current year as the textbook is already produced and counted in the aggregate demand of the past years.
C.
No, it will not be counted as the aggregate demand of the USA as no value is paid to anybody.
D.
No, it will not be counted as the aggregate demand of the USA as shares are traded and only changed the ownership of shares.
E.
It will count towards the aggregate demand of the USA and it will count under the import category as the shoes are made in the Vietnam.
F.
It will count towards the aggregate demand of the USA and it will count under the import category as the Airbus A320 are made in the EU.
G.
It will counts as the aggregate demand of the UK and will count under the import category of the UK’s Aggregate demand.
H.
It will count towards the aggregate demand as the player will spend the $10000 on consumption and or investments to raise the performance.
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