Suppose the following transactions occur during the current year: 1. Bob orders 30 cases of beer...

Question:

Suppose the following transactions occur during the current year:

1. Bob orders 30 cases of beer from a Dutch distributor at a price of $40.00 per case.

2. A U.S company sells 100 textbooks to a Canadian company at $45.00 per textbook.

3. Eric, a U.S citizen, pays $1,100 for a computer he orders from Dellosoft a U.S company.

Complete the following table by indicating how the combined effects of these transactions will be reflected in the U.S, national accounts for the current year.

Be sure to enter a "0" if none of the transactions listed are included in a given category and to enter a minus sign when the balance is negative.

Amount Dollars
Consumption
Investment
Government Purchases
Imports
Exports
Net Exports
Gross Domestic Product (GDP)

Gross Domestic Product:

Gross Domestic Product refers to the measure in terms of money related to the market value of the finished services and goods which are produced within a particular period of time.

Answer and Explanation:

...
Amount ($)
Consumption (1,200 + 1,100) 2,300
Investment 0
Government purchase 0

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Gross Domestic Product: Definition and Components

from Economics 102: Macroeconomics

Chapter 4 / Lesson 3
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