Determine whether each of the following transactions will be counted in the 2005 GDP of the United
Question:
Determine whether each of the following transactions will be counted in the 2005 GDP of the United States. If the transaction is counted, identify which expenditure component (personal consumption, gross investment, government consumption and gross investment, or net exports) will be affected.
a) Norm purchases a Budweiser beer at a bar in Washington, D.C. (Budweiser beer is produced in the United States.) Is this transaction measured in US GDP? [ Select ] ["Yes", "No"] If so, which component? [ Select ] ["Consumption", "Investment", "Government Purchases", "Net Exports", "Not part of US GDP"]
b) The owner of the bar in (a) purchases a new domestically made cooler unit in which to store his beer. Is this transaction measured in US GDP? [ Select ] ["Yes", "No"] If so, which component? [ Select ] ["Consumption", "Investment", "Government Purchases", "Net Exports", "Not part of US GDP"]
c) Carla, a U.S. foreign exchange student, works her way through college in Germany as a waitress in a bar. Is her work included in US GDP? [ Select ] ["Yes", "No"] If so, which component? [ Select ] ["Consumption", "Investment", "Government Purchases", "Net Exports", "Not part of US GDP"]
d) On her night off, Carla purchases a Budweiser beer for her friend in the German bar. Is this transaction measured in US GDP? [ Select ] ["Yes", "No"] If so, which component? [ Select ] ["Consumption", "Investment", "Government Purchases", "Net Exports", "Not included in US GDP"] ]