Which component of GDP will be affected by each of the following transactions in
ID: 1185195 • Letter: W
Question
Which component of GDP will be affected by each of the following transactions involving Ford Motor Company? If you believe that none of the components of GDP will be affected by the transactions, briefly explain why. a) You purchase a new Ford Edge (built in Oakville, Ontario) from a Ford dealer. b) You purchase a 2010 Ford Edge from a friend. c) Ford purchases seats for the Ford Edge from Magna International located in Aurora, Ontario. d) Ford produces 1,000 Edges in Oakville and ships them to a car dealer in Shanghai, China. d) Ford purchases new machine tools to use in its Oakville plant. f) The province of Ontario builds a new highway to help improve access to the Ford Edge plant.Explanation / Answer
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