For each of the following state which 2015 US GDP category o

For each of the following, state which 2015 U.S. GDP category or categories (C. I. G. NX) are affected and whether 2015 U.S. GDP will rise fall stay the same. Briefly explain. Andrew (an Australian) visits San Francisco and rents a hotel room during November 2015. Harrison (an American) visits Tokyo and rents a hotel room during July 2015. Stephen (an American) purchases a new Samsung (a Korean company) 70-inch flat screen television (made in Mexico) in October 2015. Costco (a US retailer) purchases a new Samsung (a Korean company) 70-inch flat screen television (made in Mexico) during February 2015 but it is still in their San Francisco location at the end of the year. Klay lobbies the state of California successfully to increase spending for unemployment benefits for out of work residents Andre purchases a washing machine and dryer at a garage sale in Oakland in September 2015. The washer and dryer were manufactured in December 2014.

Solution

a. It will not be included in the national income by definition as his economic interest does not lie for US.

b. It is same as the earlier.

c. It will fall under NX as it is consumption of foreign goods. As import rises NX falls and via multiplier effect GDP will also reduce.

d. It will be included in I as in I there is an inventory part. Rise in I will raise up GDP.