Determine whether each of the following transactions contributes to the calculation of GDP as total spending. If
Question:
Determine whether each of the following transactions contributes to the calculation of GDP as total spending. If it does contribute to GDP, then identify the relevant component of GDP (C, I, G, or NX).
a. Michelin sells tires to Nissan to install on their 2022 Sentras that are produced and sold in the United States.
b. Molly Maid provides house cleaning services across the United States.
c. U.S. consumers import $3.5 billion of woven apparel from Bangladesh.
d. The U.S. government spent $523.1 billion on national defense.
e. Entrepreneur and Shark Tank investor Barbara Corcoran purchases 15% of Cousins Maine Lobster food truck company for $55,000.
Step by Step Answer:
a Michelin sells tires to Nissan to install on their 2022 Sentras that are produ...View the full answer
Principles Of Economics
ISBN: 9781319330156,9781319419769
2nd Edition
Authors: Betsey Stevenson, Justin Wolfers
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