For each of the following transactions, 1) determine whether it should be includ

Question

For each of the following transactions, 1) determine whether it should be included in the calculation of GDP using expenditure approach and 2) if the answer is yes, which component of expenditure should it be included, if the answer is no, briefly explain why.

- John bought 1000 shares of Microsoft stocks at $50 per share

- Honda built a factory plant worth $1 million in Detroit

- Karl received $100 unemployment benefits

- Jane, a Canadian, spent $500 in NYC on her last visit.

- Walmart had an increase of $1 billion worth of unsold goods in its warehouse at the end of the year.

Explanation / Answer

GDP is defined as the aggregate amount of goods and services produced and consumed in the economy.

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