Identify the spending category that will reflect each of the transactions below,

Question

Identify the spending category that will reflect each of the transactions below, in the Expenditures Ap- proach to GDP measurement for the US (a) Apple Inc. buys a new set of high-speed 3D printers for its design unit in California (b) A US wholesaler purchases a sizable shipment o, Portugal and of wine from a dealer in Port sells it to consumers in Boston, MA (c) The Murray family buys a new charcoal grill (d) The Federal Government approves a S2 bln project (e) An engineering consortium from Belgium pur- Tor their back yard to repair key highway infrastructure near D.C chases a batch of new microchips from Texas Instruments, a US-based company

Explanation / Answer

(a) Apple's purchase of new printers for designing is under Gross domestic private investment (non-residential).

(b) Purchase of wine from Portugal will be under Imports. Sale of the wine to domestic consumers will be under Personal Consumption Expenditure.

(c) Purchase of charcoal grill is Personal consumption expenditure.

(d) Until the time the highway repair work actually begins, this approval does not form a part of GDP. Once highway repair work starts, it falls under Government expenditure on goods and services.

(e) Sale by US company to Belgian company falls under Exports.

Related Questions

Navigate

• Browse (All)
• Browse I
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.