1. Which component of GDP will be affected by each of the following transactions

Question

1. Which component of GDP will be affected by each of the following transactions involving FlyCheap Airlines? Briefly explain Hint: GDP C+I+G+Nx i. You purchase a ticket on a FlyCheap Airlines to visit your niece. i. FlyCheap Airlines purchases a new jetliner from Boeing ili. FlyCheap Airlines purchases new seats to be installed on a jetliner it already owns. iv. FlyCheap Airlines purchases 200 million gallons of fuel. v. A French citizen purchases a ticket to fly on a FlyCheap flight from Paris to New York. vi. The city of Nashville agrees to spend funds to extend one of the runways so that FlyCheap will be able to land larger jets

Explanation / Answer

1.Purchase of airplane tickets is part of consumption of GDP.

2.Boeing is a non American company and thus this purchase would constitute imports.

3.It will be investment.

4.Investment.

5.Airports are under government jurisdiction and thus,this would come under government spending.

Related Questions

Navigate

• Browse (All)
• Browse 1
• Subjects

---

---

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