For each of the following transactions, state the effect both on U.S. GDP and on the four

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For each of the following transactions, state the effect both on U.S. GDP and on the four components of aggregate expenditure. (L02)
a. Your mother buys a new car from a U.S. producer.
b. Your mother buys a new car imported from Sweden.
c. Your mother's car rental business buys a new car from a U.S. producer.
d. Your mother's car rental business buys a new car imported from Sweden.
e. The U.S. government buys a new, domestically produced car to be used by your mother, who has been appointed the ambassador to Sweden.
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Principles of Economics

ISBN: 978-0073511405

5th edition

Authors: Robert Frank, Ben Bernanke

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