Which of the following transactions would be included in 2018 U.S. GDP? For thos
ID: 1159849 • Letter: W
Question
Which of the following transactions would be included in 2018 U.S. GDP? For those transactions which are included in U.S. GDP, indicate whether they should count as part of C, I, G, or NX. Assume that all buyers and sellers are domestic unless otherwise stated
A. A household purchases a home in 2018 that was constructed and available for sale in 2017.
B. A household purchases 100 shares of Apple stock in 2018.
C. An increase in General Motors’ inventory of unsold automobiles in 2018.
D. A Social Security check received by a retired worker in 2018.
E. The purchase of a newly-produced Northrop jet fighter by the U.S. Air Force in 2018.
F. The purchase of Nike shoes produced in a Mexican factory in 2018.
G. You spend the entire Thanksgiving weekend of 2018 cleaning the rain gutters of your house.
H. You pay the firm “In the Gutter” to clean the rain gutters of your house that same weekend.
Explanation / Answer
A. A household purchases a home in 2018 that was constructed and available for sale in 2017. It will be included in the 2018 U.S. GDP as part of consumption.
B. A household purchases 100 shares of Apple stock in 2018. It will be included in the 2018 U.S. GDP as part of consumption.
C. An increase in General Motors’ inventory of unsold automobiles in 2018. It will be included in the 2018 U.S. GDP as part of investment.
D. A Social Security check received by a retired worker in 2018. This will not be included in 2018 U.S. GDP.
E. The purchase of a newly-produced Northrop jet fighter by the U.S. Air Force in 2018. It will included in the 2018 U.S. GDP as a part of the US government expenditure.
F. The purchase of Nike shoes produced in a Mexican factory in 2018. It will be included in the 2018 U.S. GDP as a part of Net exports (NX).
G. You spend the entire Thanksgiving weekend of 2018 cleaning the rain gutters of your house. This will not be included in 2018 U.S. GDP.
H. You pay the firm “In the Gutter” to clean the rain gutters of your house that same weekend. This will be included in the 2018 U.S. GDP as part of consumption.
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