Jack and Erin Smith live in Swarthmore, Pennsylvania. Their son, Brian, owns his

Question

Jack and Erin Smith live in Swarthmore, Pennsylvania. Their son, Brian, owns his own plumbing business. For each of the following transactions that occur in their lives, identify whether it is included in the calculation of U.S. GDP as part of consumption (C), investment (I), government purchases (G), exports (X), or imports (M). If the transaction needs to be accounted for in more than one category, check each applicable box. Transaction C X G X M The town of Swarthmore puts on a fireworks display for the Fourth of July. Jack buys a sweater made in Guatemala. Brian buys a new set of tools to use m his plumbing business Jack's employer assigns him to provide consulting services to an Australian firm that's opening a manufacturing facility in China Erin gets a haircut.

Explanation / Answer

All answers are correctly marked.

The town of Swarthmore puts firework display will not be included in any component of GDP as it does not add to production of service or good.

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