Question: Indicate if it represents an increase in the U.S. GDP, and, if so, state whether it represents consumption, investment, government purchases of goods or services,
Indicate if it represents an increase in the U.S. GDP, and, if so, state whether it represents consumption, investment, government purchases of goods or services, or net exports. If the transaction does not change U.S. GDP explain why not.

(a) A wheat farmer sells wheat flour to a bakery to be used to produce bread. (b) Timmy buys $15,000 worth of Tesla stock. (c) Your grandmother receives food stamps after your grandfather divorces her. (d) You buy a new Toyota Corolla (Toyota is a Japanese firm). The Corolla was built in a car factory in Alabama. (e) Boeing (a U.S. company) sells an 787 airplane (produced in its Seattle plant) to Korean Airlines. (f) Mr. Arrieta buys a used mattress from Isaac
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
