The following table lists the total for some monthly transactions occurring in a small town. Small...

 

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The following table lists the total for some monthly transactions occurring in a small town. Small Town Transactions Investors buy $100,000 of stocks and bonds. Workers spend $8,000 on lunches. Companies purchase $800,000 of new equipment from a domestic manufacturer. Consumers spend $1,000 on imported chocolate. Families spend $1 million on new homes. Families spend $1 million on existing homes. Domestic companies sell $1,800 of product overseas. Households pay workers $2,000 for babysitting and lawn mowing services that are not reported to the IRS. Based on this list of transactions, what is the value of the Consumer Spending component of GDP for this small town? The following table lists the total for some monthly transactions occurring in a small town. Small Town Transactions Investors buy $100,000 of stocks and bonds. Workers spend $8,000 on lunches. Companies purchase $800,000 of new equipment from a domestic manufacturer. Consumers spend $1,000 on imported chocolate. Families spend $1 million on new homes. Families spend $1 million on existing homes. Domestic companies sell $1,800 of product overseas. Households pay workers $2,000 for babysitting and lawn mowing services that are not reported to the IRS. Based on this list of transactions, what is the value of the Consumer Spending component of GDP for this small town?

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Consumer spending includes the expenditures made by households on goods ... View the full answer