3 Categories of expenditures Van and Amy Cho live in Swarthm

3. Categories of expenditures Van and Amy Cho live in Swarthmore, PA. Amy\'s father, Carlos, lives in Sweden. For each of the following transactions that occur in their lives, identify whether it is included in the calculation of U.S. GDP as part of consumption (C), investment (I), government purchases (G), exports (X), or imports (M). Check all that apply. Transaction C I G X M The Federal Aviation Administration expands the runways at Philadelphia International Airport, which is just a few miles from Van and Amy\'s house. Amy gets a new video camera made in the United States. Van\'s employer upgrades all of its computer systems using U.S.-made parts. Amy\'s father in Sweden orders a bottle of Vermont maple syrup from the producer\'s website. Amy buys a new BMW, which was assembled in Germany.

Solution

a) The Federal Aviation Administration expands the runways at Philadelphia International Airport, which is just a few miles from Van and Amy\'s house.-    G    this is govt expenditure done by govt

b) Amy gets a new video camera made in the United States.     C     consumption as US good is purchased by amy

c) Van\'s employer upgrades all of its computer systems using U.S.-made parts.   I this is investment done Van\'s employer and its U.S. made parts

d) Amy\'s father in Sweden orders a bottle of Vermont maple syrup from the producer\'s website. - X    export from U.S. of a bottle of Vermont maple syrup   ( i am assuming here that producer belongs to U.S. than only it is export otherwise this transcation will not affect the U.S. GDP- some information missing)

e) Amy buys a new BMW, which was assembled in Germany.   M     - amy is buying or importing car assembled in Germany