Which component of GDP will be affected by each of the following transactions involving General Motors? If

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Which component of GDP will be affected by each of the following transactions involving General Motors? If you believe that a transaction will affect none of the components of GDP, briefly explain why.

a. You purchase a new Chevrolet Silverado pickup from a GM dealer.

b. You purchase a 2017 Chevrolet Silverado from a friend.

c. GM purchases door handles for the Silverado from an auto parts manufacturer in Indiana.

d. GM produces 1,000 Silverados in a factory in Flint, Michigan, and ships them to a car dealer in Shanghai, China.

e. GM purchases new machine tools to use in its Flint factory.

f. The state of Michigan builds a new highway to help improve access to GM’s Flint plant.

g. Buonanno Construction in Massachusetts purchases 10 Silverados to use in its homebuilding business.

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Economics

ISBN: 9781292430645

8th Global Edition

Authors: R. Glenn Hubbard, Anthony P. O'Brien

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